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The Entrepreneurial Mind (Coverage-based) > (F) Chapter 7: Franchising > Flashcards

(F) Chapter 7: Franchising Flashcards

1
Q

franchisee

A

the buyer of a franchise

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2
Q

An arrangement in which the owner of a trademark, trade name, or copyright has licensed others to use it in selling goods or services.

A

Franchising

(Buying a Franchise)

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2
Q

franchisor

A

the seller of the franchise

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3
Q

T or F

A franchisee is illegally independent from but economically independent on the integrated business system of the franchisor

A

False

  • Legally independent
  • Economically Dependent
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4
Q

Common Obligations of a FRANCHISEE

T or F

Make a financial investment in the operation

A

T

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5
Q

Common Obligations of a FRANCHISEE

T or F
Obtain and maintain a special inventory and/or equipment package, usually purchased from the franchisor

A

F (standardized)

since pareparehas ng binebenta across the nation (ex. mcdo) need same la

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6
Q

Common Obligations of a FRANCHISEE

T or F
Maintain a specified quality of performance

A

T

gurl obviously true duh

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7
Q

Common Obligations of a FRANCHISEE

T or F

Follow a franchisee fee, as well as a percentage of the gross revenue

A

T

its nasa contract hunty

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8
Q

Common Obligations of a FRANCHISEE

T or F

Relationship is not important, do not Engage in a continuing business relationship

A

F

dude do engage para tumagal kayo

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9
Q

Advantage or Disadvantage of Buying a Franchise

Franchise Fees

A

Disadvantage

The usage of their names need to be paid – royalties

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10
Q

Advantage or Disadvantage of Buying a Franchise

Training and Guidance

A

Advantage

The expense will be on the franchisee

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11
Q

Advantage or Disadvantage of Buying a Franchise

Brand-Name Appeal

A

Advantage

The use of well-known franchise will give already a good reputation

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12
Q

Advantage or Disadvantage of Buying a Franchise

Franchisor Control

A

Disadvantage

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13
Q

Advantage or Disadvantage of Buying a Franchise

Unfulfilled Promises

A

Disadvantage

Kindly check the transes for the explanation thx

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14
Q

Advantage or Disadvantage of Buying a Franchise

Proven Track Record

A

Advantage

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15
Q

Advantage or Disadvantage of Buying a Franchise

Financial Assistance

A

Advantage

16
Q

Enumerate the Advantage of Franchise

A
  • Training and Guidance
  • Brand-Name Appeal
  • Proven Track Record
  • Financial Assistance
17
Q

Enumrate the Disadvantage of Franchise

A
  • Franchise Fees
  • Franchisor Control
  • Unfulfilled Promise
18
Q

Evaluating Opportunities for FRANCHISING

what are the three things to consider here

A
  • Cost of Franchising
  • Investigating the Franchisor
  • Seeking Professional Help
19
Q

when u see this card

familliarize urself with the cost of franchising

A
  • Basic Franchising Fee
  • Insurance
  • Opening Product
  • Inventory
  • Remodeling and Leasehold Improvements
  • Utility Charges
  • Payroll
  • Debt Service
  • Bookkeeping and Accounting Fees
  • Legal and Professional Fees
  • Licenses and Permits

all hail reggie

20
Q

Investigating the Franchisor

T or F

It would be a good sign if the franchise is already highly reputable.

A

T

21
Q

Investigating the Franchisor

T or F
It would be a cause for alarm if the franchisor is eager to sell dealership or units, or does not make a vigorous effort to evaluate interested franchisees.

A

T

22
Q

Investigating the Franchisor

T or F: Reputable franchisor will sell a franchise with just ensuring that the buyer is capable of operating it successfully

A

F (No -reputable and without)

23
Q

Hire a qualified attorney to review the franchise contract

A

Seeking Professional Help

oo dude bobo ka eh

24
Q

Seeking Professional Help

what are the things to be reviewed under the contract provision?

A
  • Those related to cancellation and renewal of the franchise
  • Share of gross revenues by the franchisor, extent of training to be provided, territorial limits, supply of materials and equipment, and extent of franchisor control
25
Q

Seeking Professional Help

adhd

A

yuyuyuyuyuyuyu

26
Q

Seeking Professional Help

Seek financial counsel for?

A
  • Assessment of financial viability of the franchise
  • Projection of income and sales for the early years

The Entrepreneurial Mind (Coverage-based) (14 decks)

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