Franchise Relationship Quiz

The relationship between the franchisor and the franchisee is called:

• Investment relationship

• Franchise relationship

• Cooperative relationship

• Business relationship

How to handle financial conflicts between franchisor and franchisee?

• Ignore the financial conflict and hope that it will resolve itself.

• Implement clear and fair policies to ensure consistency.

• The franchisor should unilaterally decide on financial matters without discussing with the franchisee.

• Do not review the contract or financial terms, even if circumstances change.

Which support service is considered the most important for the franchising system?

• Training and personnel development

• Marketing and advertising support

• Providing supply sources

• Information technology support

What is the most commonly used method to efficiently organize and manage support services for franchisees?

• Centralization

• Decentralization

• Combination of centralization and decentralization

• Use of specialized departments

The franchise relationship typically includes:

• The franchisor and the franchisee

• The buyer and the seller

• The tenant and the landlord

• All of the above

One of the main benefits of the franchise relationship is:

• Increasing the profitability for the franchisor

• Reducing the risk for the franchisee

• Rapid brand development for the franchisor

• All of the above

The franchise relationship between the parties typically includes:

• The franchisor and the franchisee

• The buyer and the seller

• The tenant and the landlord

• All of the above

What is the main responsibility of the franchisor in a franchise relationship?

• Providing support and training to the franchisee.

• Managing the financial and business planning

• Implementing advertising and marketing strategies.

• Developing relationships with customers

One of the main benefits of the franchise relationship is:

• Increasing the profitability for the franchisor

• Reducing the risk for the franchisee

• Rapid brand development for the franchisor

• All of the above

How can a franchisor prevent conflicts with the franchisee in the first place?

• Use a neutral third party to help the parties reach an agreement.

• The contract only needs to include basic terms, too much detail will cause confusion and confusion for the parties.

• Develop detailed contracts to ensure the franchise contract is clear and detailed about the rights and responsibilities of both parties.

• Franchisor has the right to decide on all issues without prior notice to the franchisee, because the franchisor is the party that controls the system.