(F) Chapter 7: Franchising Flashcards
(27 cards)
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
