Sample Franchise Agreement Quiz

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Questions and Answers

What is the responsibility of the FRANCHISEE in relation to the Americans with Disabilities Act?

FRANCHISEE can ignore accessibility requirements if it affects operations.

FRANCHISEE must ensure the SHOP is accessible to the fullest extent required by the Act. (correct)

FRANCHISEE is responsible for adhering to only local building codes.

FRANCHISEE only needs to comply if SHOPPE COMPANY requests it.

How frequently can SHOPPE COMPANY require the FRANCHISEE to remodel the SHOP?

Once every year.

Whenever there is a change in local building codes.

No more than once during any 5-year period. (correct)

Only upon request, without any frequency limitation.

What is the timeframe for FRANCHISEE to make equipment upgrades upon notice from SHOPPE COMPANY?

90 days (correct)

30 days

120 days

60 days

What can SHOPPE COMPANY request from the FRANCHISEE regarding sales and product mix?

Periodic reports on sales, costs, earnings, and related items. Signup and view all the answers

What must the FRANCHISEE do if SHOPPE COMPANY requests projections of product requirements?

Regularly project sales, costs, and product requirements. Signup and view all the answers

What is one requirement that the Franchisee must adhere to in their operations?

Practicing food storage and handling as described in the SHOP OPERATIONS MANUAL. Signup and view all the answers

What consequence does the Franchisee face for failing to comply with the requirements outlined in Section 11.6?

A suspension of their operating rights without terminating the Agreement. Signup and view all the answers

Why is it crucial for the Franchisee to purchase HAAGEN-DAZS® PRODUCTS only from designated suppliers?

To maintain the quality, uniformity, and distinctiveness of HAAGEN-DAZS® PRODUCTS. Signup and view all the answers

What are the potential outcomes for the Franchisee if they do not adhere to food safety standards?

Temporary suspension of the right to operate. Signup and view all the answers

What is expected of the Franchisee regarding the sourcing of supplies and equipment?

Purchasing items following SHOPPE COMPANY's provisions. Signup and view all the answers

How does SHOPPE COMPANY determine the prices of HAAGEN-DAZS® PRODUCTS for the Franchisee?

Determined by SHOPPE COMPANY or its designated supplier. Signup and view all the answers

What must the Franchisee do to ensure compliance with operational standards set by SHOPPE COMPANY?

Follow the guidelines in the SHOP OPERATIONS MANUAL or as communicated. Signup and view all the answers

What types of products must Franchisee seek approval for from Shoppe Company?

Food, beverage, supplies, and equipment Signup and view all the answers

Which products are exempt from the prior approval requirement?

HAAGEN-DAZS® PRODUCTS Signup and view all the answers

What must Franchisee do if they wish to purchase an unapproved product?

Submit a written request along with documentation Signup and view all the answers

Who has the right to inspect the proposed supplier's facilities?

Shoppe Company's representatives Signup and view all the answers

What must Franchisee do regarding suppliers of products that have not been pre-approved?

Submit potential suppliers for Shoppe Company approval Signup and view all the answers

Which of the following items does Franchisee need prior approval for before purchasing?

Uniforms Signup and view all the answers

What happens if a supplier's products do not conform to the specifications required by Shoppe Company?

Shoppe Company can deny the supplier approval Signup and view all the answers

What is required on paper goods, packaging, and other supplies according to Shoppe Company's standards?

Required text and marks Signup and view all the answers

If Franchisee purchases from an unapproved distributor, what might be the consequence?

Franchisee may face penalties from Shoppe Company Signup and view all the answers

What should Franchisee do with the reasonable costs of product evaluation and testing?

Cover the costs as per Shoppe Company's requirements Signup and view all the answers

Study Notes

Franchisee Responsibilities and Approval Processes

Franchisee must obtain written approval from Shoppe Company for any plans leading to a temporary halt of operations or modifications to the shop design.
Responsibility for ensuring compliance with the Americans with Disabilities Act and local building codes lies solely with the Franchisee, regardless of approvals obtained.
Any identified issues with shop premises or equipment need to be repaired within 30 days unless expedited by Shoppe Company.

Remodeling and Equipment Upgrades

Shoppe Company can require Franchisee to remodel the shop to meet current design and operational standards, but this can only occur once every five years.
Franchisee is required to make equipment upgrades reflecting new technologies within 90 days of notice from Shoppe Company.

Sales and Reporting Requirements

Franchisee must provide sales and financial data upon request, with the possibility of monthly reporting.
Franchisee to project sales, costs, and product requirements for Haagen-Dazs® products as requested by Shoppe Company.

Product and Supply Management

Franchisee must adhere to strict sourcing protocols, acquiring Haagen-Dazs® products exclusively from Shoppe Company or its designated suppliers to maintain quality and consistency.
Other food and beverage products can only be purchased from pre-approved suppliers that meet Shoppe Company's standards.
Paper goods, packaging, signs, and uniforms must be sourced from Shoppe-approved vendors and must display required branding and marks.

Approval Procedures

If Franchisee wishes to procure non-approved products believed to meet specifications, a written request must be submitted to Shoppe Company, including documentation for evaluation.
Inspection of proposed supplier facilities and assessment of product samples is authorized by Shoppe Company, with evaluation costs borne by the Franchisee.

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Description

Test your understanding of the Franchisee's obligations and the operational requirements set by SHOPPE COMPANY. This quiz covers topics such as supplies, food handling, and daily operations as outlined in the SHOP OPERATIONS MANUAL. Are you ready to ensure compliance and excellence in franchise management?