What is a legal agreement that gives an individual the right to market a company's products or services in a particular area?
A franchise
100
Why would a business owner sell his/ her business?
Losing money; personal reasons
100
You decide to start a family owned business. State the costs you would incur.
Start-up costs; advertising fees
100
What franchise opportunity is known for the Golden Arches?
McDonalds
100
Who is the founder/ owner of Chipotle?
Steve Ells
200
What is the fee the franchise owner pays in return for the right to run the franchise?
Initial Franchise Fee
200
What is an advantage of buying an existing business?
Already established customer-base; prior records of revenues & costs
200
Name one disadvantage about working in a family-owned business.
Senior management positions are held by family members, regardless of their abilities.
200
America runs on this franchise.
Dunkin Donuts
200
State a company you can franchise (one from class).
McDonald's; Dunkin Donuts; Taco Bell; etc.
300
What are royalty fees?
Weekly or monthly payments made by the owner of the franchise to the seller of the franchise.
300
What is a disadvantage of buying an existing business?
Business is for sale because it is failing; serious problems may exist
300
State the three advantages to working in a family-owned business.
1. Pride
2. Enjoy working with relatives
3. Carry on traditions"
300
"Yo quiero Taco Bell" means what in English?
I want Taco Bell
300
What are start-up costs?
The expenses incurred during the process of creating a new business
400
Jim purchased a McDonald's franchise. The franchise fee was $20,000. Jim's franchise made $52,000 profit. McDonald's requires a 5% royalty fee. What does Jim owe McDonald's?
$2,600
400
State one important step before purchasing an existing business.
Visit the existing business during operating hours.
400
What was one tip the Goya CEO gave to those interested in running a family business?
No I in Team; Work From the Ground Up
400
The Colonel started this chicken chain with his "finger-lickin'" good recipe.
KFC
400
Joe purchased a Rita's franchise. The franchise fee was $45,000. Joe's franchise made $73,000 profit. Rita's requires a 5% royalty fee. What did Joe pay Rita's in franchise fees?
$3,650
500
Name an advantage of owning a franchise.
Established product or service; Management, technical & other assistance; Cheaper equipment & supplies; Guaranteed consistency
500
Who should you hire to help you navigate the purchasing process?
Accountant and/ or lawyer
500
What family owned business is the largest family owned Hispanic food producer in the US?
Goya
500
Opening this franchise might be a seasonal opportunity with high summer revenues but nearly no business all winter long.
Rita's Water Ice
500
You decide to start a franchise. State the costs you would incur.