Business related reasons for selling may include all but which of the following? Jack owns a franchise. Many fees are must be paid regardless of ________. Which of the following should the potential entrepreneur consider in developing a plan of operation? BLAW CH 35 Flashcards | Quizlet Uniqueness in a product or service can be demonstrated through a new-new approach or a new-old approach. Matilda would like to open an ice cream and sweet treats store but she will need a loan to do so. c. Franchising offers all the following benefits for - Brainly.com The advantages of franchising include: Advertising a. An agreement not to compete is also known as If you are looking to start a business that is creative and is not controlled by others, then franchising is your best option. This demonstrates which advantage of a small business? Externally dedicated to the market, yet internally focused on production, seeking to produce high-volume or high-value product/service while carefully examining any new opportunities for costs/benefits in relation to known strengths of the firm, is a description of which one of the market-focused business strategies identified below. Do you think this was a popular tax? There are six major organizational development tasks required of a franchisor to develop from a single unit firm into a growing franchise system. The costs of franchises vary significantly. determining markets in a geographical area with suitable customer demographics. C) Penalty E) All of the above, The term "FDD" stands for which of the following? B) Business-format franchising legal and professional fees d. NOT: prospective franchises being recruited into the system. franchisor. C. Lodging. B) Be a concern for a franchisee In 2016, the International Franchise Association reported that franchises in the United States (US) provided nearly ______ direct jobs. is the principal governing mechanism of the franchisor-franchisee relationship. C. Franchise fee. b. Franchisees may pay a fee that is separate from the royalty fee, often called a cooperative advertising fee, to contribute to an individual advertising fund. What is the key to convincing someone to purchase your franchise, product, or service? The number of franchised business establishments has continued to growth in the U.S. Today there are approximately ( ) franchise businesses in operation. Education courses, What is the largest source of new business ideas among women? E) Very few franchisors do inspections. What are the four main areas of taxation one must consider when reporting about a franchise's activity? goods. a. The Federal Trade Commission monitors all of the following activities except. d. Which major question in his business plan does this statement address? An existing business has the benefit of having an established set of processes. D. There is no difference, they are different labels for the same form of franchise channel. Capital advantages What factor generally determines which co-branding method is chosen by a franchisor? income or wealth. quality of the competition. The owner may be in trouble with suppliers. weaknesses. E) Regret, Performing due diligence may include ________. All are costs. It is so successful that she has decided to allow others to use her business name, materials, and methods in operating their own business for a fee. all of the above. A major reason for success of franchising is b. D) Quality assurance b. What are they? Macy because the SBA's primary financial function is to guarantee loans. Up-front capital requirements C) Any suppliers According to the text, the most important reason why franchisors adopt franchise channels is: A) Franchisor agreement engaging in a continuous business relationship. Selling a franchise to the franchisee have the ability to quickly adapt to change. E) Loss of control, All of the following are selected franchise fees and costs according to the text, except ________. Bill has his own tax preparation and accounting business. The acutal cost of "opening the doors" of a franchise establishment can be as high as $200,000. c. Which one of the following is not one of the required factors for successful leadership? Potential franchisees should examine the franchisor's package and balance the cost and the _________ being offered. Which of the following is not an ongoing cost of franchises? Which of the following organizations can assist him? c. B. all of the above. Which of the following is not a type of franchising according to the text? inventory What is a realistic number for a sample size when doing market research? Joyce worked for a large printing company for two years then quit to take a job at a small sole proprietorship printing company. Often, strategic initiatives fail because: They are seen as extra work to be accomplished in addition to existing work. The franchisor licenses its trademarked products to franchisees. a. There is no need for legal representation when entering into a franchise agreement. C) Never provide help for start-up T/F, One drawback of becoming a franchisor relates to possible new restrictions as a requirement for contract renewal. can learn about the franchise from the ground up. Attorneys and CPA firms Which of the following small businesses could be categorized as being in the distribution industry? Is it up to date? Which of the following are resources that an entrepreneur can typically use to find a business for sale? All can be sidestepped. brand-name appeal of the franchise Marketing strategy. A. Macy argues that its primary function is to guarantee loans. One of the more interesting ratios for franchising is the Location Selection Ratio or Sales/Costs ratio. According to the text, which of the following is not a consideration when selecting a franchise? His actions are possible because small businesses. 3- Customers already know you exist. E. The details of franchise management are vague enabling franchisees to adapt to changing environmental conditions. It is not uncommon for a buyer to be faced with a franchise fee of 250,000 to 1,000,000. The product life cycle model is a theoretical construct that helps franchisors understand the industry cycle and the cycle of specific products or services with a franchise system's product line. a. Samantha would like to get a small business loan from the SBA. What is the name of that program? The franchisor's responsibilities include providing If you don't know how you want to be positioned in the marketplace, and don't know the value propositions you uphold, then you will be: positioned in the market-place and educated on that position by your competition. The Consumer Product Safety Act of 1972 sets safety standards for products other than food and drugs. Which of the follow statements about starting a franchise are similar to starting a business from scratch? B) Friends This company could also be referred to a. Samantha would like to own her own business but doesn't want to start it from scratch. The franchise's time frame. D. Franchisors spend billions of dollars annually to keep franchisees trained. a. The prospective investor should get as much information as possible on the franchisor. symbols and logos. b. accounts receivable WebAll of the following are a new type of franchising opportunity except ________. d. In product distribution franchises: insurance guidance from the franchisor Terry's Tires made just under $750,000 last year, according to the Small It is a channel used exclusively for distribution of consumer durable goods. The owner may be in trouble with suppliers. Start-up standards required of franchisees may include which of the following? It is structured between single-unit and multi-unit franchises. asset value. All of the following are a new type of franchising opportunity except, Any costing saving resulting from franchises purchasing power helps to offset other costs , such as franchise, Start - Up Standard require of franchisees may include which of the following, Products and service in a franchise may not be altered, added, or dropped without, in many instances, products or ingredients in a franchise must be purchased from, As a franchise one will benefits from the purchasing power of the franchisor to get, a provide a significant advantage for a business start-up, all of the following are advantages of franching except, all of the following are selected franchise fee and cost accrording to the text except, Franchisors are to provide operations manuals and training to their franchisees , which are valuable resource for success, Fundamentals of Financial Management, Concise Edition, Daniel F Viele, David H Marshall, Wayne W McManus, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield. c. Franchisors must have a high-quality support Chapter 6 ent Flashcards | Quizlet Which of the following is not included in a partnership agreement? A partnership agreement identifies the type and value of the investment contributed by each partner. amount to the government independent of his or her Small Business Chp IV - Franchises and Buyouts Flashcards b. Franchisors benefit from the franchise agreement because they have. Studies have shown that the incidence of innovation among small-business workers is ___ among workers in larger businesses. discloses any predecessor to the current business. provide professional management training to the unit's staff. Which of the following are benefits of purchasing an existing business? The _________ is the entrepreneur who buys the franchise from the ________. A ____ is a system of distribution that enables a supplier to arrange for a dealer to handle a specific product or service under certain mutually agreed upon condtions. Which philosophy of expansion is, as a rule, the best method for franchisors? A) Provide a significant advantage for your business start-up B) Marketing a. Independence and a desire to determine one's own destiny are some of the entrepreneurs' personal factors in small-business success, others include: Jennifer would like to open her own business. must be provided to the potential franchisee early in the process. the franchisor still maintains a great deal of control. Which of the following is a disadvantage for the franchisor? An understanding of customers buying patterns before the business begins operations. new-new, new-old all of the above. Identify an accurate statement about buying an existing business. Changes in leasehold conditions. Which of the following is NOT one of the four P's of selling? All of the following are a new type of franchising opportunity except ________. NOT: sufficient time to integrate the brands MAYBE: natural synergy between the brands. Why might it be a good idea for a franchisor to investigate several ASP vendors before choosing one? She is concerned she may not be given a loan and researches the subject, discovering that in 2013, the SBA data showed that women-owned businesses are. d. b. a. Sylvia has an SBA-guaranteed business loan for the average life of such loans. Juan has been awarded a franchise in an industry in which the franchisor has licensed him to sell and distribute its product to retailers. It has an established cash flow. Sales records are of very little value to a buyer in evaluating a company's worth. One downside for franchisors participating in franchise channels is: d. CHAPTER 2 Flashcards | Quizlet Three major reasons that explain why franchisors distribute via franchise channels are: (1) capital advantages, (2) potential to reduce distribution costs, and (3) possible high level of managerial motivation fostered by franchising. D. Franchising is an American business model that does not work well outside the U.S. Business students at universities can work together to provide management counseling to small businesses in their community. Though a location manual or policy may be developed to assist in determining optimal sites, for franchised businesses that require a store-front location the final determination often rests with: Which two concepts receive primary consideration when determining store layout? The motivation of franchise channel members has less to do with cooperation and partnerships than in conventional channels. d. Which of the following is an advantage to purchasing a franchise?. franchises have a very high success rate compared to other small businesses. Which one of the following is not part of a franchise business arrangement? the sales package is used by the franchisor to give a prospective franchisee a good sales presentation; the sales playbook helps the salesperson sell to customers. The franchise with the most outlets in the United States is. b. A. You stop by a Carl's Jr. fast food restaurant and notice that they also have Green Burrito Mexican food. E. Royalty fee. all of the above. a. equity? a great source for quickly locating franchise businesses in many different industries. He states in the plan, "This business will serve over 400 customers by the end of the year and employ ten full-time employees." Which of the following statements regarding the franchise fee are correct? D. Number of channel members and degree of control. c. c. Business format franchising is best illustrated by the system offered by, The franchising strategy whereby an individual or firm is granted the legal right to own more than one unit of a franchised business is known as. 5-age. the owner's reason for selling. B. 3 reasons for buying an existing business. As a class assignment, business students were told to prepare a business plan for a business they would like to own. A franchise system can be used for handling NOT: asset utilization for the business planning, persistence, patience, people, profit (pg 136) what are the 3 b. She heard about a business model in which an individual or organization grants a license to another to operate an individually owned business as though it were part of a chain of outlets or stores. D. Is based on a percentage of the franchisee's gross sales. The local Small Business Administration Office What is the purpose of ratio analyses of financial statements? all of the above, What is the largest source of new business ideas among men? franchisor. Franchisee or Franchisor: Who Gets Franchise Control | QVALON How many personnel are going to remain? In this scenario, John is a _____. In multi-unit franchisees, franchisees receive permission from the franchisor to own and operate more than one unit at the outset of their relationship, whereas single-unit franchises initially only receive permission to operate a single unit. In many instances, products or ingredients in a franchise must be purchased from ________. b. d. c. the exact status of the franchisor's intellectual property, such as logos, symbols, and words. A) They may be announced or unannounced. c. B. b. Generally, the larger and more successful the franchisor, the greater the franchise fee that is charged. a. There is an established set of process. For Jerry's Automobile Parts Fabricating business to qualify as a small business, it can employ no more than ___ people. A(n) _______ _______ is a basic contract generated by a franchisor for all franchisees. all of the above. Which of the following are tasks that need to be completed by a new owner during the transition period from a former business to a new business? Develop strategic plans for the franchise firm. Which one of the following is not one of the levels for development? In the franchise system's "Bankruptcy" section of the UFOC, the company must disclose which of the following? Ability to achieve a good golf score while making sales to prospective franchisees. Strong franchisors have all of the following except ________. franchisor supplies brand names, techniques, or other services instead of a complete product. Pay for all physical assets (e.g., equipment and building), needed to operate the franchise. Which of the following is not an element of a tort? C) Geography b. Can you become a millionare by buying this business? all of the above, The UFOC contains how many sections: liquidation pricing, "Piggybacking" one's way into business involves using a ____approach. company name. economic efficiency? d. The accountant assigns revenues and expenses to specific years before preparing the financial statements. c. c. d. D) Many legal disputes

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