Franchise Quiz

What is a franchise?

• A business where you own a company and make all the rules

• A business where you use the name and products of a bigger company

• A business that only sells products online

Who is a franchisee?

• The person who buys and runs the franchise

• The person who owns the franchise brand

• A customer who buys products

What does a franchisee usually pay to the franchisor?

• Nothing

• A small gift

• A fee or money

Who is the franchisor?

• The person who buys the franchise

• The bigger company that owns the brand

• The person who sells the products

Which of the following is an advantage of a franchise?

• You don’t need to pay for the brand name

• The brand is already well-known

• You can change the brand name

What is one disadvantage of a franchise?

• You have to pay a fee to the franchisor

• You get to keep all the profits

• You can make any rules you want

Why might someone choose to buy a franchise?

• To start a new, unknown brand

• To sell products from a famous company

• To avoid paying any fees

Which of these is an example of a franchise?

• A new local coffee shop

• A branch of McDonald's

• A home-based online store

What must a franchisee follow?

• Their own rules only

• The rules of the franchisor

• No rules at all

Which of these is true about franchises?

• They offer a new business idea that no one has tried

• They are usually riskier than starting your own business

• They give you the benefit of an established brand