Franchising Quiz

What is franchising?

• Owning a business independently

• Partnering with another company temporarily

• Operating a business under another company’s system

• Selling products to multiple companies

What initial fee is usually required in a franchise agreement?

• Royalty fee

• Advertising fee

• Franchise fee

• Licensing fee

What document provides guidelines for running a franchise?

• Operations manual

• Sales report

• Training module

• Annual review

How often do Mystery Diners visit McDonald’s in the text?

• Weekly

• Daily

• Monthly

• Annually

Which of these is a franchised fast-food company?

• Nike

• Burger King

• IKEA

• Walmart

What does a franchisee often need to maintain in their business?

• Personal branding

• Company ownership

• Quality standards

• Flexible policies

What is a master franchisee’s role?

• Own multiple franchises

• Supervise other franchisees

• Train employees directly

• Conduct market research

Which quality is essential in a McDonald’s franchise?

• Flexibility

• Creativity

• Cleanliness

• Independent decision-making

Why must franchisees follow the franchisor’s standards?

• To reduce costs

• For brand consistency

• To allow more flexibility

• To increase their independence

What is a common disadvantage for franchisees?

• High creative control

• Independent marketing

• Limited flexibility

• Low brand recognition