Franchising Questions & Answers PDF

What is a key factor to consider when evaluating a franchise opportunity? a. Location b. Employee satisfaction c\. Product variety d\. Social media presence What should you know before starting a franchise? a. Franchise location b. Franchise history c. Franchise popularity d. Total fi...

What is a key factor to consider when evaluating a franchise opportunity? a. Location b. Employee satisfaction c\. Product variety d\. Social media presence What should you know before starting a franchise? a. Franchise location b. Franchise history c. Franchise popularity d. Total financial requirements Why should you avoid investing in franchises based on fads? a. They require less research b. They are always profitable c. They have better support d. They can change quickly What is important to check about the management of a franchisor? a. Their social media following b. Their franchise fees c. Their marketing strategies d. Their integrity and competence What should you be cautious of when dealing with franchisors? a\. Long-term commitments b\. High-quality products c\. Flexible contracts d\. Pressure tactics Why is it beneficial to talk to current franchisees? a. To learn about competitors b. To find new locations c. To negotiate better fees d. To gain valuable insights What is a significant drawback of franchising? a. Limited support b. Poor training c. Low brand recognition d. High startup costs What does the franchise royalty fee typically range from? a. 5% to 9% of gross sales b. 10% to 15% of gross sales c. 15% to 20% of gross sales d. 1% to 3% of gross sales What is the purpose of conducting due diligence? a. To expand the franchise quickly b. To reduce operational costs c. To increase sales immediately d. To verify information and assess risks What document is crucial for researching a franchise? a. Franchise Disclosure Document (FDD) b. Franchise Agreement c. Business Plan d. Marketing Strategy What is the purpose of Discovery Day? a. To explore the franchisor\'s world b. To assess competition c. To finalize the franchise agreement d. To meet potential customers