Franchising Quiz

What is a franchisor?

• A business model

• A type of franchise

• A person who sells franchises

• A person who buys a franchise

What does a franchisee gain from a franchisor?

• Ownership of the franchisor's company

• A guaranteed profit

• The ability to create their own brand

• Exclusive rights to a trademark

Which type of franchising involves a manufacturer granting rights to sell products?

• Business-format Franchising

• Pure Franchising

• Distribution Franchise

• Product Franchising

What is a key advantage of product distribution franchises?

• Independence from the franchisor

• Use of the franchisor's trademark

• Complete control over the business

• No initial fees

What is a disadvantage of franchising?

• Training provided

• Large start-up costs

• Market-tested products

• Established brand recognition

Which type of franchise provides a complete business format?

• Manufacturing Franchise

• Business-format Franchising

• Product Franchising

• Distribution Franchise

What is a common example of pure franchising?

• Fast-food restaurants

• Retail stores

• Car dealerships

• Service stations

What does a franchisee typically pay to a franchisor?

• A one-time fee only

• Only for marketing support

• Ongoing royalties and an initial fee

• Nothing, it's free

What is one of the pros of franchising?

• Complete creative control

• Guaranteed success

• Ready-made business formula

• No need for training

What is a distribution franchise?

• A franchise that focuses on manufacturing

• A franchise that sells products using the franchisor's brand

• A franchise that does not require a trademark

• A franchise that allows complete independence