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304. The most popular type of business for franchising is:
305. A ____________ is the share of profits or percentage of sales a franchisee pays to a
franchisor.
306. Which of the following is an advantage of franchises?
307. One reason franchises have become so popular is that this arrangement provides the
franchisee with:
308. Global franchising offers:
309. Opening and operating a franchise in a different country:
310. Franchisors may send
reverse royalties
to franchisees who:
311. _____________ is by far the most popular target for American franchisors seeking to
establish franchises in other countries.
312. Franchised businesses are successful (both domestically and internationally) because:
313. An evaluation of franchising would conclude that this type of arrangement:
314. Which of the following statements best summarizes the experience of American
franchisors in foreign countries?
315. One important consideration when prospecting for a good franchise business is:
316. Which of the following statements about buying a franchise is most accurate?
317. Which of the following statements about operating a U.S.-based franchise in a foreign
country is most accurate?
318. Sierra is interested in becoming a franchise owner, by opening and operating one of 50
Cactus Katie's Grills, a very successful fast food chain specializing in food dishes from the
American southwest. Which of the following problems is Sierra most likely to encounter if she
agrees to become a franchisee?
319. Marco is a franchisee with Daggies, a chain of sandwich shops. His business was doing
well until several Daggies franchisees got in trouble and were forced to close their shops. Soon
afterward, Marco's business deteriorated and he too was forced to close. This is an example of:
320. Daggie's Sandwiches, Inc., sells the rights to use its name and sell its sandwiches in a
given market area to aspiring businesspeople who are willing to pay agreed-upon fees and meet
certain contractual terms. Daggie's:
321. Midas Muffler sells franchises to prospective businesspersons who want to use the
Midas name and offer Midas products. In a franchise arrangement, Midas would be the ________,
and the buyer of the franchise is the ________.
322. Jenna plans to invest in a cleaning service franchise called Spare Time. At her first
interview with the franchisor's selling agent, she learned that the parent company expects
royalties of 5%. These are:
323. A prospective franchise owner wants to keep his monthly costs at a minimum. The
franchisor he is reviewing is advertising that royalty payments of 8% of sales could be as high as
$250,000 per month. The franchisor is claiming that a franchisee can expect monthly sales to be
as high as:
324. Naomi is planning to invest in a new online franchise, the Novel Artist, Inc. The franchisor
provides proprietary software and training for designing invitations and cards for special
occasions such as weddings, graduations, and birth announcements. The franchisee is obligated
to pay a monthly fee to the franchisor. Naomi will use the software to create her own special
designs that she will ultimately feature on her website. Order turn-around time must be fast. She
can only take on as many clients as she can make good on delivery. An advantage of Naomi's
online franchise is:
325. Greg plans to open up three Hottie Pata′tee franchises in the greater Denver area. He
just informed you that he plans to negotiate with the franchisor to eliminate the Big Potato Head
that graces the roof of these restaurants. Greg is likely to learn that:
326. A ___________ is an organization that is owned and controlled by the people who use it—
producers, consumers and workers with similar needs pool their resources for mutual gain.
327. In rural areas electrical power is often sold by ____________ that take advantage of the
government's policy to sell them electricity at wholesale rates.
328. Some __________ ask members/customers to work at the organization for a number of
hours a month as part of their duties.
