The Franchise Model The The Franchise Model Quiz 1. A franchisee need have no prior knowledge of their chosen industry sector, but it will usually improve their chances of success if they have an interest and some prior knowledgeTrueFalse2. As a potential franchisor you need to consider;- Select all that apply structure and level of your franchise fee and royalty rate, management fees, marketing fees. your new role which will include selling skills, teaching and mentoring whether a JV or partnerships would be better for your business in the long term. A training programme for franchisees. Who will deliver it and who will handle support for franchisees?3. Fees charged by a franchisor may include;- Select all that apply Set up fees ongoing royalties Marketing fees fixed monthly royalty fee4. To be suitable to franchise a business must be;- Select all that apply scalable depend on a unique factor such as your personal unique skill or personality produce returns that will sustain the franchisors fees and the franchisee possible to systemise and replicate5. As you prepare to franchise your business, you will usually need to;-Select all that apply produce a business case and a plan raise a large amount of capital to expand the brand rapidly present to investors or bankers to raise the set up costs and legal fees present information to regulators6. The advantage of the franchise system is that there is;- Select all that apply a blue print for success a track record guaranteed success a proven formula7. The fees and royalties paid by the franchisee can be used by the franchisor to;- Select all that apply fund their infrastructure train and support franchisees improve the quality of goods and services market and build the brand in the marketplace.8. A franchisor cannot refuse to renew a franchise even if targets are not met.TrueFalse9. As a potential franchisee, the things you would be looking for in a franchisor would include;- Select all that apply the likely return on your investment the fees you will have to pay to the franchisor an easy job a successful model10. In a Business Format franchise there is not usually a tightly controlled agreement as to how the business is runTrueFalseBe sure to click Submit Quiz to see your results! Name Email Time is Up! ← Managing The Business 3Retail and Retailing →
