Deck 8: Managing the Franchisors Operations Process

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?

A)marketing manual
B)reporting manual (including appropriate financial forms)
C)training manual
D)operating (or operations)manual

Answer 1

C
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.

A)market research
B)public relations\
C)advertising
D)marketing philosophy

Answer 2

C
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

A)promotions package only
B)operations materials only
C)training and financial information only
D)promotions package and operations materials

Answer 3

D
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:

A)clarifying and disseminating costs of operation about the prototype unit
B)hiring and training salespeople to recruit or solicit prospective franchisees
C)running background checks on the director of franchising and the initial salespeople hired to sell franchises
D)developing an estimate of the number of franchisees to be recruited and signed in the first year of franchising

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:

A)ahead of all other competitive franchise systems operating in your market area
B)positioned in the market-place and educated on that position by your competition
C)provided sufficient time to determine these factors for yourself within the first 3-5 years of business
D)grateful for the freedom provided by the franchisor for you to "do your own thing."

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?

A)pre-opening manual
B)site inspection manual
C)record keeping manual
D)communications manual

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:

A)the bank that loans the funds for construction of the store
B)the franchisee
C)the franchisor
D)the city's zoning commission

Question 8

The recruitment package is part of the franchisor's

A)initial response to a potential franchisee's inquiry for information about the franchise
B)provided only after potential franchisees provide detailed financial information about themselves to the franchisor
C)is included with the operations manual following initial discussions between franchisor and potential franchisee
D)initial portion of the training manual for franchisee staff training.

Question 9

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

A)solicit and sign franchisees
B)inform potential franchisees about the business in general terms only
C)learn as much about potential franchisees while sharing limited brochure materials about the franchise system,
D)none of the above

Question 10

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

A)training manual
B)site inspection manual
C)quality control manual
D)operating manual