BA109 Quiz 6 Latest 2023 with complete solution
A significant advantage a franchisee has over an independent business is the participation in the franchisor's ________ largely due to the ________ the franchise offers.
centralized buying power: economies of scale
A franchise is a system of dist...
BA109 Quiz 6 Latest 2023 with complete solution
A significant advantage a franchisee has over an independent business is the
participation in the franchisor's ________ largely due to the ________ the
franchise offers.
centralized buying power: economies of scale
A franchise is a system of distribution in which semi-independent business
owners pay ________ and ________ to a parent company in return for the right to
become identified with its trademark, to sell its product or services, and often to
use its business format and system.
fees; royalties
When the franchiser has the right to establish a semi-independent organization in
a particular territory to recruit, sell, and support other franchises, it is known as a
________ franchise.
master
The bigger the franchise, the more successful the franchisees will be.
False
The franchisee turnover rate is the rate at which franchisees leave a franchise
system.
True
Quality is so important in franchising that most franchisers retain the right to
terminate the franchise contract and to repurchase the outlet if a franchisee fails
to maintain quality standards.
True
The failure rate for franchises is:
lower than the average rate for new businesses.
Benefits of involvement in a franchise experience include:
All of these
Franchises have experienced three major growth waves since its beginning that
include a focus on:
rapid growth, the service sector, and specific market niches.
A recent study reports that the success rate of franchisees increases when a
franchise system:
All of these increase the rate of success.
The failure rate for franchises is below that for other types of new businesses.
True
________ is an emerging international market for U.S. franchisers that is expected
to realize the highest future growth rate.
China
Which of the following is an indication of a dishonest franchiser?
All of these
Pure franchising involves a system of franchising in which a franchisor sells a
franchisee a complete business format and system.
True
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