Franchise Quiz

What is a franchise?

• A type of restaurant

• A business model where a franchisee uses a franchisor's brand

• A government program

• A type of investment

Who is the franchisor?

• The customer of the franchise

• The original company that owns the brand

• The person who buys the franchise

• The manager of the franchise location

What does a franchisee do?

• Creates a new brand

• Operates a franchise location

• Manages the franchisor's headquarters

• Sells products to the franchisor

What do franchisees pay to the franchisor?

• No fees at all

• A one-time fee only

• Initial and ongoing fees

• Only for training sessions

Why do people buy franchises?

• To avoid any fees

• To create their own brand

• To have an established brand and support

• To work independently without guidance

Which of the following is an example of a franchise?

• A local bakery

• McDonald's

• A family-owned restaurant

• A farmer's market

What is a benefit of buying a franchise?

• No need for training

• Ability to change the brand name

• Access to a proven business model

• Unlimited control over the business

What is a common type of franchise?

• Online blogs

• Fast food chains

• Independent bookstores

• Local farms

What is a disadvantage of franchises?

• No support from the franchisor

• No established customer base

• High franchise fees and royalties

• Complete control over the business

What do franchisees usually have to follow?

• Their own rules

• Only local laws

• No rules at all

• Franchisor's guidelines