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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. Also known as the UFOC - or Uniform Franchise Offering Circular - the disclosure document provides information about the franchisor and franchise system
The Franchise Rule of 1978
trademark
Distributorship Franchise
disclosure statement
2. Franchisor transmits to the essential ingredients or formula to make a product.
franchisee
Manufacturing plant
franchise agreement
franchising
3. Franchisor determines the territory to be served
franchise agreement
Franchise Start Up Assistance by Franchisors
Business Organization
Location of franchise
4. 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.
Business Premises
franchise agreement
Franchise Termination
Payment for the franchise
5. Fees paid to a licensor by a licensee based upon the production or sales of a licensed product
Multiple Unit Franchise
Location of franchise
State Protection for Franchisees
Royalties
6. Requires franchisors to disclose material facts that a prospective franchisee needs to make an informed decision concerning the purchase of a franchise.
franchise agreement
The Franchise Rule of 1978
product distribution
Multiple Unit Franchise
7. 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
Manufacturing plant
Royalties
Business Organization
franchisor
8. Two franchises share location and resources
Federal Regulation of Franchises
franchise agreement
co-branding or piggybacking
Good Faith and Fair Dealing
9. Manufacturing concern licenses a dealer to sell its product. Example is an auto dealership.
Franchise Disclosure Document (FDD)
Distributorship Franchise
Franchise Contract
franchising
10. Protects franchisee from unreasonable demands and bad faith terminations of the franchise by the
product distribution
franchise
Multiple Unit Franchise
Federal Regulation of Franchises
11. The person or company that gets the right from the franchisor to do business under the franchisor's trademark or trade name
franchisee
UFOC or the Uniform Franchise Offering Circular
franchise
Payment for the franchise
12. 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
franchise
Business Premises
Master Franchise
business format franchise
13. 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
Franchise Contract
franchisor
franchise agreement
Business Organization
14. Termination must be 'for cause -' such as the death or disability of the franchisee - insolvency - breach - or failure to meet quotas.
franchising
Multiple Unit Franchise
Franchise Termination
Business Organization
15. A format for the disclosure document which provides information about the franchisor and franchise system to the prospective franchisee
franchisor
Business Premises
royalty
UFOC or the Uniform Franchise Offering Circular
16. Distributorship - Chain-style - Manufacturing or processing plant
business format franchise
Types of Franchises
Federal Regulation of Franchises
Franchise Contract
17. A specific type of franchise that allows individuals and organizations to buy the right to subfranchise within a geographic area
franchise agreement
Master Franchise
Multiple Unit Franchise
Franchise Start Up Assistance by Franchisors
18. Marketing technique making a product or service known by it's name or symbol
Quality Control
Distributorship Franchise
Branding
Royalties
19. A license that describes the relationship between the franchisor and franchisee including use of trademarks - fees - support and control
Location of franchise
UFOC or the Uniform Franchise Offering Circular
franchise
Types of Franchises
20. The primary source of legal information about a franchise available to prospective / interested franchisees
franchisor
Branding
Franchise Disclosure Document (FDD)
Manufacturing plant
21. 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
franchise
Franchise Termination
Quality Control
Franchise Start Up Assistance by Franchisors
22. The person or company that grants the franchisee the right to do business under their trademark or trade name
Franchise Disclosure Document (FDD)
disclosure statement
franchisor
Multiple Unit Franchise
23. One week of training for managers - operating manual - guidelines for accounting audits - ongoing support / assistance
co-branding or piggybacking
Franchise Start Up Assistance by Franchisors
Good Faith and Fair Dealing
Manufacturing plant
24. A method of business expansion characterized by a trademark license - payment of fees - and significant assistance and/or control
disclosure statement
franchising
The Franchise Rule of 1978
Franchise Termination
25. 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
Cooperative Advertising Fee
Payment for the franchise
Chain-style Franchise
Royalties
26. The regular payment made by the franchisee to the franchisor - usually based on a percentage of the franchisee's gross sales
Types of Franchises
Business Premises
Good Faith and Fair Dealing
royalty
27. A type of franchise that gives the exclusive rights to open franchisee - operated units within specified areas
Federal Regulation of Franchises
trademark
Business Premises
Multiple Unit Franchise
28. A fee paid by franchisees to contribute to a shared advertising fund - separate from royalty fees
Cooperative Advertising Fee
franchising
Franchise Contract
State Protection for Franchisees
29. 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.
Quality Control
State Protection for Franchisees
Franchise Disclosure Document (FDD)
Payment for the franchise
30. Franchisor usually initiates litigation
Franchise Disclosure Document (FDD)
Royalties
Main source of litigation (law suits) in Franchise trials
Master Franchise
31. Franchise franchisor's method of conducting business a franchise where the franchisee simply sells the franchisor's products without using the
franchisor
product distribution
franchise agreement
Franchise Termination
32. The franchisor's identifying marks - brand name and logo that are licensed to the franchisee
trademark
Business Premises
co-branding or piggybacking
business format franchise
33. The legal - written contract between the franchisor and franchisee which tells each party what each is supposed to do
Master Franchise
Internet Franchise
Franchise Termination
franchise agreement
34. 15 states have laws similar to federal rules requiring franchisors to provide presale disclosures to prospective franchisees
franchise agreement
State Protection for Franchisees
Business Premises
business format franchise
35. A type of franchise company that does not depend upon physical location for delivery of products / services - but a virtual business
trademark
Internet Franchise
co-branding or piggybacking
disclosure statement
36. 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.
Payment for the franchise
Multiple Unit Franchise
Good Faith and Fair Dealing
Distributorship Franchise