Test your basic knowledge |

Franchise Basics

Subjects : business-skills, industries

Instructions:

Answer 30 questions in 30 minutes.
If you are not ready to take this test, you can study here.
Match each statement with the correct term.
Don't refresh. All questions and answers are randomly picked and ordered every time you load a test.

This is a study tool. The 3 wrong answers for each question are randomly chosen from answers to other questions. So, you might find at times the answers obvious, but you will see it re-enforces your understanding as you take the test each time.

1. Who can be a multiple stakeholder
Banks - suppliers - owners - and employees
Ipo - sale - merger - draw cash out
Deliver business system - signage - products - taught - good product - geographical acceptance
Territory - opening dates - transfer fees - rights of first refusal and support

2. 10 day and 5 day rule
Finances - experience - education
Conviction - know laws - tax rates - can you bring products in and out - cost and availability of resources
Master - single units - multiple - joint venture - company owned stores
10 days to think about contract 5 days with completed contract

3. Where to grow franchise
Financials-profit - cash flow - ebidta - state of industry and market area - length of remaining on franchise agreement
Deliver business system - signage - products - taught - good product - geographical acceptance
Trade missions - trade shows - embassies - world franchise council
Top 100 cities - proactive not reactive - controlled growth strategy

4. What do franchisees earn money on
Good clean financials - employee records - supplier contracts - franchise agreement - market date - legal info
Net profit
Inform and allow for comparisons
What is clearly expected of franchisee

5. 5 considerations prior to franchising internationally
What is clearly expected of franchisee
15 years
Territory - opening dates - transfer fees - rights of first refusal and support
Conviction - know laws - tax rates - can you bring products in and out - cost and availability of resources

6. 6 ways to structure international franchise system
Cashing out and maximizing value for stakeholders
Yes - but they can run together
Master - single units - multiple - joint venture - company owned stores
Territory - opening dates - transfer fees - rights of first refusal and support

7. What do franchisors earn his money on?
Doesn't meet local needs - no $ out of country - short term problems - no commitment - not willing to modify - and don't want to accommodation customs
Gross profit
Ftc has not reviewed the document - consult lawyer - read entire doc. - and take time
Deliver business system - signage - products - taught - good product - geographical acceptance

8. What has replaced ufoc
Deliver business system - signage - products - taught - good product - geographical acceptance
Territory - opening dates - transfer fees - rights of first refusal and support
Fdd
...

9. Do 10 day and 5 day rule run separately
Financials-profit - cash flow - ebidta - state of industry and market area - length of remaining on franchise agreement
Like new round of negotiations
Yes - but they can run together
Banks - suppliers - owners - and employees

10. Profile of franchisee
Gross profit
Ipo - sale - merger - draw cash out
Who can afford it - ability to operate your franchise - where they live
Net profit

11. Not to franchise internationally

12. How to evaluate financial potential
Ipo - sale - merger - draw cash out
15 years
What is clearly expected of franchisee
Talk to franchisees - ask for data on company stores - press releases - conference calls

13. Considerations for franchising
What is clearly expected of franchisee
Fdd
Only one offering/selling it - replicable - make $ - support fee structure - prototype - history - comp.
Talk to franchisees - ask for data on company stores - press releases - conference calls

14. 3 ways to ensure correct financial reporting
...
Trade missions - trade shows - embassies - world franchise council
Contract
Top 100 cities - proactive not reactive - controlled growth strategy

15. Key items that go into valuing
Cashing out and maximizing value for stakeholders
Financials-profit - cash flow - ebidta - state of industry and market area - length of remaining on franchise agreement
Trade missions - trade shows - embassies - world franchise council
Territory - opening dates - transfer fees - rights of first refusal and support

16. Options when agreement ends
Like new round of negotiations
Finances - experience - education
Top 100 cities - proactive not reactive - controlled growth strategy
Renew - close - convert to independent store

17. 4 items on cover page
10 days to think about contract 5 days with completed contract
Good clean financials - employee records - supplier contracts - franchise agreement - market date - legal info
Renew - close - convert to independent store
Ftc has not reviewed the document - consult lawyer - read entire doc. - and take time

18. How do you find right partner
Trade missions - trade shows - embassies - world franchise council
Low interest rates - low unemployment - good economy
Who can afford it - ability to operate your franchise - where they live
...

19. Evaluate potential franchisees
Inform and allow for comparisons
Trade missions - trade shows - embassies - world franchise council
Finances - experience - education
Banks - suppliers - owners - and employees

20. Average length of franchise agreement
...
Low interest rates - low unemployment - good economy
Top 100 cities - proactive not reactive - controlled growth strategy
15 years

21. Points negotiated in contract
Territory - opening dates - transfer fees - rights of first refusal and support
Trade missions - trade shows - embassies - world franchise council
Contract
Top 100 cities - proactive not reactive - controlled growth strategy

22. Typical ways harvesting occurs
Finances - experience - education
Ipo - sale - merger - draw cash out
Trade missions - trade shows - embassies - world franchise council
Net profit

23. Successful sale
Like new round of negotiations
Conviction - know laws - tax rates - can you bring products in and out - cost and availability of resources
Only one offering/selling it - replicable - make $ - support fee structure - prototype - history - comp.
Good clean financials - employee records - supplier contracts - franchise agreement - market date - legal info

24. What makes a business replicable
Finances - experience - education
Contract
Deliver business system - signage - products - taught - good product - geographical acceptance
10 days to think about contract 5 days with completed contract

25. Approach agreement renewal
Fdd
Low interest rates - low unemployment - good economy
Like new round of negotiations
Finances - experience - education

26. Goal of harvesting
...
Cashing out and maximizing value for stakeholders
Like new round of negotiations
Deliver business system - signage - products - taught - good product - geographical acceptance

27. What does a good clear franchise agreement articulate?
Low interest rates - low unemployment - good economy
Ipo - sale - merger - draw cash out
Banks - suppliers - owners - and employees
What is clearly expected of franchisee

28. What governs franchisee/franchisor relationship
Banks - suppliers - owners - and employees
Only one offering/selling it - replicable - make $ - support fee structure - prototype - history - comp.
Who can afford it - ability to operate your franchise - where they live
Contract

29. Purpose of ufoc/fdd
Ftc has not reviewed the document - consult lawyer - read entire doc. - and take time
Ipo - sale - merger - draw cash out
Good clean financials - employee records - supplier contracts - franchise agreement - market date - legal info
Inform and allow for comparisons

30. Time good or bad to sell
Gross profit
Yes - but they can run together
Low interest rates - low unemployment - good economy
Talk to franchisees - ask for data on company stores - press releases - conference calls

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Test your basic knowledge |

Franchise Basics

Search BasicVersity Tests

Browse BasicVersity

3d Computer Modeling

Actionscript

Adobe Flash

Adobe Illustrator

Adobe Illustrator Shortcuts

Adobe Indesign Publishing

Adobe Photoshop CS 2 - CS 3

Adobe Photoshop CS 5

Adobe Photoshop CS 5 Keyboard Shortcuts

Adobe Photoshop Graphic Design

Adobe Photoshop Tools And Commands

Adobe Premiere Keyboard Shortcuts

Adobe Premiere Pro

After Effects Keyboard Shortcuts

Agile Development

Agile Scrum Methodology

Ajax

Android Programming

Animation

Asp.net Programming