Unit 1 Franchise Types

What is the main characteristic of a job franchise?

• Requires a large capital investment

• Involves distributing the franchisor's products

• Provides a detailed plan and procedures for operating the business

• Involves starting and running a small franchised business alone

Which type of franchise deals mainly with large products such as cars and appliances?

• Job franchise

• Product franchise

• Business format franchise

• Investment franchise

What does a business format franchise provide to its franchisees?

• A detailed plan and procedures for operating the business

• A large capital investment

• Distribution of the franchisor's products

• Initial and ongoing training and support

Which type of franchise requires a large capital investment and often involves engaging a management team?

• Job franchise

• Product franchise

• Business format franchise

• Investment franchise

What is conversion franchising?

• A modification of standard franchise relationships

• A home-based or low investment franchise

• A franchise that distributes the franchisor's products

• A franchise that requires a large capital investment

Which industries extensively use conversion franchising?

• Fast food and retail

• Real estate brokers and florists

• Automobile producers

• Hotels and larger restaurants

What is the most popular type of franchise system?

• Job franchise

• Product franchise

• Business format franchise

• Investment franchise

What is the purpose of franchising?

• To start and run a small franchised business alone

• To distribute the franchisor's products

• To provide a detailed plan and procedures for operating the business

• To expand and grow a business

Which type of franchise involves adopting trademarks, marketing programs, and training systems from the franchisor?

• Job franchise

• Product franchise

• Business format franchise

• Conversion franchise

What is the main benefit of franchising?

• Low investment requirement

• Access to a proven business system

• Ability to distribute large products

• Opportunity for rapid growth