Bael32 Franchising Chapter 5-8 exam

Question 1

The five Cs

Answer 1

Capacity
Collateral
Capital
Conditions
Character

Question 2

■ Your capacity to replay the loan
■ The capital you have invested or will be investing into the
business
■ The collateral that will guarantee the loan
■ The conditions relating to the loan, including its intended
purpose and how the funds will ultimately be used
■ Your character, which is the personal impression that the
lender has about you, the borrower.

Answer 2

Capacity
Collateral
Capital
Conditions
Character

Question 3

defines
your business, identifies the goals of the business, and includes
a balance sheet and cash flow analysis.

Answer 3

Business Plan

Question 4

is a legal agreement
between you and your franchisor that establishes,
describes, and enforces the relationship.

Answer 4

Franchisee Agreement

Question 5

is a lawyer who has an expertise in franchising.
Your franchise attorney will understand the legal nuances of a
UFOC and Franchise Agreement and truly understand how franchising works

Answer 5

Franchise Attorney

Question 6

A home-based business, as opposed to a traditional office, is
operated from your place of residence.

Answer 6

Home Office

Question 7

A core business tool needed in virtually any office is a desktop or
laptop computer equipped with a high-speed Internet connection (a DSL or broadband connection is definitely

Answer 7

Computer and software

Question 8

should be capable of handling at least two
phone lines and should have a hold feature, along with an auto
dialer in which you can store your most frequently dialed numbers.

Answer 8

Telephone

Question 9

a is a retail-based location in the heart of
a city, town, or community that is not part of an indoor mall or
strip center

Answer 9

Downtown retail area

Question 10

Malls are indoor, fully enclosed, and centrally located shopping
areas that contain dozens, perhaps hundreds, of individual
retail stores and one or two major department stores (called
anchor stores), as well as restaurants and, typically, a food court.

Answer 10

Retail mall

Question 11

(also referred to as a strip center or strip
mall) is a string of attached stores located outdoors that share a
common parking lot.

Answer 11

Retail shopping center

Question 12

This type of retail location is not part of a mall, shopping center, or downtown area.

Answer 12

Stand-alone retail location

Question 13

typically vary large, hollow buildings
(meaning that they have few interior rooms, if any).

Answer 13

Warehouse facilities

Question 14

This term refers to the
size of the local population that has a definite want or need for
your business products or services (your target customer base)

Answer 14

population density

Question 15

lists a wide range of franchise development, valuation services, and franchise consulting companies
that specialize in site selection.

Answer 15

Franchise Times Professional Services Directory

Question 16

During a relatively short training period, typically
between one and four weeks, you’ll be provided with
a vast amount of information from your franchisor.

Answer 16

Training Basics

Question 17

is the cookie-cutter process you’ll follow to
operate your business, which is exactly the same system your
franchisor provides to all of its other franchisees.

Answer 17

franchise system

Question 18

This is a printed how-to guide designed to provide franchisees with a detailed resource and answer book

Answer 18

operations manual

Question 19

that will help you acquire the last-minute knowledge you need as you become a business operator.

Answer 19

field support