________ Is an Arrangement Whereby the Manufacturer or Sole Distributor
________ is an arrangement whereby the manufacturer or sole distributor of a trademarked product or service gives exclusive rights of local distribution to independent retailers in return for their payment of royalties and conformance to standardized operating procedures.
A)A joint venture
D)A leveraged buyout
Which of the following is not an advantage of franchising?
A)No entry cost
B)Availability of management expertise
D)Knowledge of the market
Which statement about capital requirements in franchising is not true?
A)Franchisees pool monies to lower the costs for advertising and sales promotion.
B)Most franchisors will offer managerial assistance on the basis of need upon the start of the franchisee.
C)Newsletters and other publications reflecting new ideas and developments are continuously sent to franchisees.
D)The franchisee has to spend resources to establish the credibility of the business.
Franchisees usually contribute _____ of sales to an advertising pool.
A)None,each franchisee pays for their own advertising