(F) Chapter 7: Franchising Flashcards
franchisee
the buyer of a franchise
An arrangement in which the owner of a trademark, trade name, or copyright has licensed others to use it in selling goods or services.
Franchising
(Buying a Franchise)
franchisor
the seller of the franchise
T or F
A franchisee is illegally independent from but economically independent on the integrated business system of the franchisor
False
- Legally independent
- Economically Dependent
Common Obligations of a FRANCHISEE
T or F
Make a financial investment in the operation
T
Common Obligations of a FRANCHISEE
T or F
Obtain and maintain a special inventory and/or equipment package, usually purchased from the franchisor
F (standardized)
since pareparehas ng binebenta across the nation (ex. mcdo) need same la
Common Obligations of a FRANCHISEE
T or F
Maintain a specified quality of performance
T
gurl obviously true duh
Common Obligations of a FRANCHISEE
T or F
Follow a franchisee fee, as well as a percentage of the gross revenue
T
its nasa contract hunty
Common Obligations of a FRANCHISEE
T or F
Relationship is not important, do not Engage in a continuing business relationship
F
dude do engage para tumagal kayo
Advantage or Disadvantage of Buying a Franchise
Franchise Fees
Disadvantage
The usage of their names need to be paid – royalties
Advantage or Disadvantage of Buying a Franchise
Training and Guidance
Advantage
The expense will be on the franchisee
Advantage or Disadvantage of Buying a Franchise
Brand-Name Appeal
Advantage
The use of well-known franchise will give already a good reputation
Advantage or Disadvantage of Buying a Franchise
Franchisor Control
Disadvantage
Advantage or Disadvantage of Buying a Franchise
Unfulfilled Promises
Disadvantage
Kindly check the transes for the explanation thx
Advantage or Disadvantage of Buying a Franchise
Proven Track Record
Advantage
Advantage or Disadvantage of Buying a Franchise
Financial Assistance
Advantage
Enumerate the Advantage of Franchise
- Training and Guidance
- Brand-Name Appeal
- Proven Track Record
- Financial Assistance
Enumrate the Disadvantage of Franchise
- Franchise Fees
- Franchisor Control
- Unfulfilled Promise
Evaluating Opportunities for FRANCHISING
what are the three things to consider here
- Cost of Franchising
- Investigating the Franchisor
- Seeking Professional Help
when u see this card
familliarize urself with the cost of franchising
- 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
Investigating the Franchisor
T or F
It would be a good sign if the franchise is already highly reputable.
T
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.
T
Investigating the Franchisor
T or F: Reputable franchisor will sell a franchise with just ensuring that the buyer is capable of operating it successfully
F (No -reputable and without)
Hire a qualified attorney to review the franchise contract
Seeking Professional Help
oo dude bobo ka eh
Seeking Professional Help
what are the things to be reviewed under the contract provision?
- 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
Seeking Professional Help
adhd
yuyuyuyuyuyuyu
Seeking Professional Help
Seek financial counsel for?
- Assessment of financial viability of the franchise
- Projection of income and sales for the early years
