which of the following is true of a franchise? course hero

What is the difference between a franchisee and a franchisor?

A) Customer. Trust between the franchisee and the franchisor is the bedrock of any successful franchise system. With a poor franchise relationship, a franchise with a seemingly good business plan and proven economic system might break apart. They must be able to communicate successfully with the franchisor, customers, staff, and other franchisees.

What do you call a franchisee with a trademark?

Aug 07, 2021 · Which of the following statements is true about a franchise? A franchise is a license to operate a business. A franchise is a form of business structure. A franchisor will always dictate the business structure of the franchisee. A franchisee will …

Why are franchises regulated by the government?

3 Which of the following is true regarding franchise revenues a The initial. 3 which of the following is true regarding franchise. School Ateneo de Manila University; Course Title BSAC 201; Uploaded By CorporalWaterRedPanda28. Pages 4 This preview shows page 1 - 3 out of 4 pages.

What is an example of a business operation franchise?

Oct 30, 2019 · This preview shows page 7 - 8 out of 8 pages. 27. 27. The continuous fee paid by the franchisee to the franchiser based on a percentage of the franchisee's gross revenue is termed: A. royalty fee. B. start-up fee. C. licensing fee. D. franchise fee. A. royalty fee. 28.

Which of the following is true of franchising quizlet?

Which of the following is true about franchising? A franchise is an agreement whereby independant businessperson is given exclusive rights to sell a specified good or service.

Whats is a franchise?

A franchise is a joint venture between a franchisor and a franchisee. The franchisor is the original business. It sells the right to use its name and idea. The franchisee buys this right to sell the franchisor's goods or services under an existing business model and trademark.

Which of the following is true of a franchise agreement made between a franchisor and a franchisee?

Which of the following is true of a franchise agreement made between a franchisor and a franchisee? It contains clauses requiring the purchase of supplies and the displaying of marketing material.

What is an advantage of franchises quizlet?

1. Franchising provides a better mechanism for selecting and offering incentives to outlet operators than salaried employees. 2. Franchising offers an efficient mechanism for obtaining human and financial resources for rapid firm growth.

What is a franchise example?

Some of the most successful franchise businesses in the United States include Subway, McDonald's, Pizza Hut, Burger King, and Dunkin' Donuts; but restaurants are not the only kind of franchise businesses available. Some business types are more appropriate for franchising than others.Jan 13, 2017

What type of franchises are there?

The five major types of franchises are: job franchise, product franchise, business format franchise, investment franchise and conversion franchise.Job Franchise. ... Product (or Distribution) Franchise. ... Business Format Franchise. ... Investment Franchise. ... Conversion franchise.

What are advantages of franchise?

There are several advantages of franchising for the franchisee, including:Business assistance. One of the benefits of franchising for the franchisee is the business assistance they receive from the franchisor. ... Brand recognition. ... Lower failure rate. ... Buying power. ... Profits. ... Lower risk. ... Built-in customer base. ... Be your own boss.

Which of the following are included in franchise agreement?

The franchise agreement outlines the costs of franchising ownership. All franchises charge fees. These include the initial franchise fee, as well as ongoing fees such as the monthly royalty fee, advertising or marketing fee, and any other fee. Agreements can include late fees and interest.Aug 25, 2020

Which of the following is true about microlenders?

Which of the following is true about microlenders? They lend smaller amounts of money to business owners who might not qualify for conventional bank loans. What is a specific type of machine learning that uses layers of artificial neural networks to mimic brain functions?

Which is the main benefit of franchise ownership?

The main benefit of becoming a franchisee is that the business will have an established product or service. In franchising, someone has already done the work of developing and establishing a viable business system. Rookie mistakes will likely have already been ironed out.

Which is the main benefit of franchise ownership quizlet?

Which is the main benefit of franchise ownership? The concept is proven and less likely to fail.

What is the advantages and disadvantages of franchising?

franchising-tableAdvantagesDisadvantagesFranchisees may be more talented at growing the business and turning a profit than employees would beFranchisors earn royalties from sales. Franchisees earn money from profits. Achieving growth in both isn't always possible, potentially causing conflict6 more rows•Jan 30, 2015

What is a franchisee?

Franchisee: One receiving a license to use another's (the franchisor's) trademark, trade name, or copyright in the sale of goods and services. Franchisor: One licensing another (the franchisee) to use his/her trademark, trade name, or copyright in the sales of goods and services.

What is a franchise in business?

Franchise: Any arrangement in which the owner of a trademark, trade name, or copyright licenses another to use that trademark, trade name or copyright under specified conditions or limitations, in the selling of goods and services.

Why are franchises governed by contract law?

One of the reasons state governments and the federal government have passed statutes regulating franchises is to: protect prospective franchisees from dishonest franchisors and franchise termination without good cause.

Do franchisors have to register a disclosure document?

Many states require a franchisor to register a disclosure document known as the Franchise Disclosure Document (FDD). True. To prevent arbitrary or bad faith terminations, state law may prohibit termination without "good cause" or require that certain procedures be followed in terminating a franchising relationship. True.