The Franchise Model Quiz | Management Skills Courses

1.

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 model

2.

A franchisor cannot refuse to renew a franchise even if targets are not met.

True

False

3.

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 knowledge

True

False

4.

Fees charged by a franchisor may include;-
Select all that apply

Set up fees

ongoing royalties

Marketing fees

fixed monthly royalty fee

5.

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 formula

6.

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?

7.

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.

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 regulators

9.

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 replicate

10.

In a Business Format franchise there is not usually a tightly controlled agreement as to how the business is run

True

False