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Buying a Franchise

Total questions: 10

Worksheet time: 6mins

Name
Class
Date
1.

What are 4 reasons why you could choose franchising?

a)

training

b)

Operating procedures and operational assistance

c)

Monitoring and management assistance

d)

National & regional advertising

e)

Hours of operation and pricing

2.
True or False - There is no set up fee involved in setting up a Franchise
a)
TRUE
b)
FALSE
3.

A type of franchise in which the product, method of distribution, sales and management procedures are highly controlled.

a)

product distribution franchise

b)

area development franchise

c)

business format franchise

4.

A person who purchases the right from the franchisor to operate the franchise known as:

a)

Franchise

b)

Franchisee

c)

Franchisor

d)

Business

5.

the regular payment made by the franchisee to the franchisor, usually based on the percentage of the franchisee's gross sales

(a)  

6.

A product and/or service distribution system which is governed by a contract known as:

a)

Franchise

b)

Franchisee

c)

Franchisor

d)

Business

7.
What does the franchisor provide for those purchasing the franchise?
a)
advice
b)
training
c)
advertising
d)
all of these are provided 
8.

The purpose of the franchise agreement is to give prospective franchisees with information about the franchisor, the franchise system and the agreements they will need to sign so that they can make an informed decision.

a)

TRUE

b)

FALSE

9.

What are 2 significant franchises mentioned in the presentation?

(a)  

10.

Which of the following is a step involved when purchasing a franchise?

a)

Get track record of franchisor

b)

Set up your Discovery Day

c)

Do a market research

d)

Check your competition