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Test your basic knowledge |
Franchizing Vocab
Start Test
Study First
Subjects
:
business-skills
,
industries
Instructions:
Answer 36 questions in 15 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. A fee paid by franchisees to contribute to a shared advertising fund - separate from royalty fees
disclosure statement
Cooperative Advertising Fee
State Protection for Franchisees
Royalties
2. Franchisor determines the territory to be served
Chain-style Franchise
Location of franchise
Business Organization
Business Premises
3. The person or company that grants the franchisee the right to do business under their trademark or trade name
franchisor
co-branding or piggybacking
Manufacturing plant
Franchise Start Up Assistance by Franchisors
4. The person or company that gets the right from the franchisor to do business under the franchisor's trademark or trade name
Franchise Start Up Assistance by Franchisors
franchisee
Business Premises
Internet Franchise
5. The franchisor's identifying marks - brand name and logo that are licensed to the franchisee
franchise
Franchise Disclosure Document (FDD)
trademark
Payment for the franchise
6. Franchisee ordinarily pays an initial fee or lump-sum for the license. Franchisor relies on initial fee for profit. Sometimes franchisee is required to pay a percentage of franchisor's advertisement cost and other expensive.
Payment for the franchise
co-branding or piggybacking
Good Faith and Fair Dealing
Multiple Unit Franchise
7. A license that describes the relationship between the franchisor and franchisee including use of trademarks - fees - support and control
Payment for the franchise
Main source of litigation (law suits) in Franchise trials
product distribution
franchise
8. Fees paid to a licensor by a licensee based upon the production or sales of a licensed product
Royalties
Chain-style Franchise
Cooperative Advertising Fee
franchisor
9. The primary source of legal information about a franchise available to prospective / interested franchisees
co-branding or piggybacking
Franchise Contract
Quality Control
Franchise Disclosure Document (FDD)
10. The regular payment made by the franchisee to the franchisor - usually based on a percentage of the franchisee's gross sales
Franchise Start Up Assistance by Franchisors
Chain-style Franchise
disclosure statement
royalty
11. Franchise franchisor's method of conducting business a franchise where the franchisee simply sells the franchisor's products without using the
business format franchise
Franchise Disclosure Document (FDD)
product distribution
Good Faith and Fair Dealing
12. 15 states have laws similar to federal rules requiring franchisors to provide presale disclosures to prospective franchisees
State Protection for Franchisees
franchising
Franchise Termination
Franchise Disclosure Document (FDD)
13. May specify whether the premises for the business must be leased or purchased outright. Sometimes - a building must be constructed to meet the terms of the agreement.
trademark
Multiple Unit Franchise
Business Premises
Royalties
14. Marketing technique making a product or service known by it's name or symbol
Master Franchise
franchisee
Payment for the franchise
Branding
15. Franchisee's business organization is of great concern to the franchisor. Franchisor may require that the business have a particular form and capital structure. May also provide standards of operation in terms of sales quotas - quality - and record k
Business Organization
royalty
Main source of litigation (law suits) in Franchise trials
disclosure statement
16. Franchisor transmits to the essential ingredients or formula to make a product.
Chain-style Franchise
Franchise Contract
Branding
Manufacturing plant
17. A specific type of franchise that allows individuals and organizations to buy the right to subfranchise within a geographic area
Master Franchise
Franchise Contract
Types of Franchises
business format franchise
18. Two franchises share location and resources
co-branding or piggybacking
franchising
Location of franchise
Franchise Start Up Assistance by Franchisors
19. A type of franchise company that does not depend upon physical location for delivery of products / services - but a virtual business
Types of Franchises
Federal Regulation of Franchises
Internet Franchise
franchisor
20. Protects franchisee from unreasonable demands and bad faith terminations of the franchise by the
business format franchise
Federal Regulation of Franchises
franchise
Multiple Unit Franchise
21. Distributorship - Chain-style - Manufacturing or processing plant
Business Organization
co-branding or piggybacking
Payment for the franchise
Types of Franchises
22. This type of franchise includes not only a product - service and trademark - but also the complete method to conduct the business itself - such as the marketing plan and operations manuals
business format franchise
franchisor
Main source of litigation (law suits) in Franchise trials
Types of Franchises
23. Requires franchisors to disclose material facts that a prospective franchisee needs to make an informed decision concerning the purchase of a franchise.
The Franchise Rule of 1978
co-branding or piggybacking
State Protection for Franchisees
Payment for the franchise
24. One week of training for managers - operating manual - guidelines for accounting audits - ongoing support / assistance
Franchise Start Up Assistance by Franchisors
co-branding or piggybacking
Federal Regulation of Franchises
franchise
25. Agreement may provide for some degree of supervision and control by the franchisor so that it can protect the name and reputation. Certain standards for the facility and will be permitted to make periodic inspections to ensure certain standards for t
UFOC or the Uniform Franchise Offering Circular
Royalties
Good Faith and Fair Dealing
Quality Control
26. A method of business expansion characterized by a trademark license - payment of fees - and significant assistance and/or control
Quality Control
Main source of litigation (law suits) in Franchise trials
franchising
Multiple Unit Franchise
27. Specifies the terms and conditions of the franchise and spells out the rights and duties of the franchisor and franchisee - includes agreement on royalties - who settles disputes
Business Premises
Franchise Contract
Franchise Termination
Royalties
28. Franchisor usually initiates litigation
Good Faith and Fair Dealing
Main source of litigation (law suits) in Franchise trials
franchise
Chain-style Franchise
29. A format for the disclosure document which provides information about the franchisor and franchise system to the prospective franchisee
Business Premises
Franchise Termination
Franchise Disclosure Document (FDD)
UFOC or the Uniform Franchise Offering Circular
30. The legal - written contract between the franchisor and franchisee which tells each party what each is supposed to do
Business Premises
franchise agreement
Manufacturing plant
Branding
31. Franchise operates under a franchisor's trade name a is identified as a member of a select group. Certain standards must be met in order to be complete
franchising
Franchise Contract
Chain-style Franchise
franchise agreement
32. A type of franchise that gives the exclusive rights to open franchisee - operated units within specified areas
Franchise Start Up Assistance by Franchisors
Multiple Unit Franchise
franchisor
franchise agreement
33. Also known as the UFOC - or Uniform Franchise Offering Circular - the disclosure document provides information about the franchisor and franchise system
Multiple Unit Franchise
franchise agreement
business format franchise
disclosure statement
34. If a court perceives that a franchisor has aribitrarily or unfairly terminated a franchise - the franchisee will be provided with a remedy for wrongful termination.
Cooperative Advertising Fee
Business Organization
Good Faith and Fair Dealing
UFOC or the Uniform Franchise Offering Circular
35. Termination must be 'for cause -' such as the death or disability of the franchisee - insolvency - breach - or failure to meet quotas.
Franchise Termination
Branding
Business Organization
franchisor
36. Manufacturing concern licenses a dealer to sell its product. Example is an auto dealership.
Royalties
Good Faith and Fair Dealing
Manufacturing plant
Distributorship Franchise