Terms
This term comes from an old dialect of French and means "privilege" or "freedom"
Franchise
Figure 15.1 shows how many different types of franchise systems?
Three
Learning Objective #3 explains two primary advantages to franchising - tell me one of them
- Helps ventures grow quickly with provided capital
- More effective for organizations with multiple units
Kentucky Fried Chicken began their franchise in what year?
1952
Of the 18,875 franchises in KFC's system (as of 2016), what percent are in the United States?
24%
A person who owns a operates more than one outlet of the same franchisor, whether through an area or a master franchise agreement
Multiple-unit franchisee
Figure 15.2 shows how many steps to setting up a franchise system?
Nine
Learning Objective #1 tells how many of the most familiar franchises in the United States were started in what era (decade)?
1940s and 1950s
This company gathers new mothers together to do 45-minute power walks with their babies in strollers and has an initial franchise fee between $5,000-$50,000.
Fit4Mom
The total initial investment for the franchise "Anytime Fitness" is between $78,000 and $_____________
$371,175
Franchisors are required by law to disclose all their costs in a document called the Franchise __________ ___________
Disclosure Document
Figure 15.3 lists disadvantages of franchising as a method of business expansion - list one:
- Profit sharing
- Loss of control
- Friction with franchisees
- Managing growth
- Differences in required business skills
- Legal expenses
What learning objective (#) explains the steps an entrepreneur goes through to buy a franchise?
#5
This company that provides a household product is strictly a franchisor and has no company-owned units.
Budget Blinds
Comfort Keepers requires new franchisees to attend how many hours of training before they open their franchise?
40 hours
What do you call a regular payment that franchisees make back to the franchisor?
Royalty fees
Table 15.6 lists the advantages and disadvantages of buying a franchise. What is the main disadvantage?
Cost
Learning Objective #6 explains legal aspects of franchises which are enforced by what federal agency?
FTC
This used clothing franchise took years to develop but now has over 40 locations with a goal of 100 by the end of 2016.
Uptown Cheapskate
The FDD contains how many sections/items of information?
23
What do you call people who buy franchises from master franchisees?
Subfranchisees
Figure 15.3 lists the steps in purchasing a franchise. How many steps are there?
Seven
Learning Objective #6 explains the 3 conditions that exist for a franchise to exist. Which one is missing yet?
- Selling of goods & services that bear a trademark
- ______________
- Royalty payments by the purchasers of the business to the owner of the trademark for the right to use the trademark in the business
Retention of significant control or assistance by the holder of the trademark on the operation on the operation of the business
This fast-food company at the end of 2013 had 35, 429 restaurants in 119 countries
McDonald's
In 2014, there were how many individual franchise outlets operating in the United States?
770,368