Question 1

Which type of franchisor program offered to franchisees is based on the general notion that new franchisees have little or no specific business knowledge about the franchise system?

Accepted Answer

Training manual.See discussion under "training manual" and Blimpie Training illustration

Question 2

From a broad perspective,( )means effective communication and promotion of the franchised product or service to the targeted audience.

Accepted Answer

Advertising. See Advertising Manual section of chapter for discussion and illustrations.

Question 3

The written information provided in the franchise package to a prospective franchisee contains

Accepted Answer

Promotions package and operations materials are the two most common types of materials included by the franchisor to a franchisee prospect.However,this is can vary somewhat,depending upon the particular franchise system.

Question 4

The primary administrative costs of administering a franchise program typically include those of:

Accepted Answer

Hiring and training salespeople to recruit and solicit prospective franchisees.See discussion under "administrative expenses" section of chapter.

Question 5

There is one thing every franchise system knows.If you don't know how you want to be positioned in the marketplace,and don't know the value propositions you uphold,then you will be:

Accepted Answer

Positioned in the marketplace and educated on that position by your competition.See Inset box under heading of "preparation".

Question 6

Part of the motivation for a franchisor to develop a franchise system is to ensure consistency throughout the business units in the system.Which type of franchisor manual is specifically focused to this purpose?

Accepted Answer

Site Inspection Manual. See Site Inspection Manual section in chapter for discussion and illustration.

Question 7

Though a location manual or policy may be developed to assist in determining optimal sites,for franchised businesses that require a store-front location the final determination often rests with:

Accepted Answer

The franchisor.A site must meet franchisor criteria prior to any decisions for purchase,development and construction or lease by the franchisee.

Question 8

The recruitment package is part of the franchisor's

Accepted Answer

The initial response to a potential franchisee's inquiry for information.It usually consists of a recruitment brochure,a disclosure document and other information about the benefits and opportunities of becoming a franchisee with the particular franchise system.

Question 9

The general purpose of a promotions package by the franchisor to potential franchisees is to:

Accepted Answer

Solicit and sign up franchisees to be part of the franchise system

Question 10

Which franchisor manual provided by the franchisor to new franchisees is referred to as "the bible?"

Accepted Answer

Operating or Operations Manual addresses the day-to-day operations of a franchise unit with step-by-step explanation of operations.

Quiz 8: Managing the Franchisors Operations Process