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