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Question 101

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Premises:
A franchise arrangement whereby the franchisee obtains an entire marketing and management system geared to entrepreneurs
A franchise agreement granting the right to use a widely recognized product or name
An agreement in which the buyer promises the seller that s/he will not reveal confidential information or violate the seller's trust
An entrepreneur whose power is limited by a contractual relationship with a franchising organization
The legal document between a franchisor and a franchisee
An independent firm or individual acting as a middleman or sales agent with the responsibility of finding new franchisees within a specified territory
Specialized brokers that bring together buyers and sellers of businesses
The exercise of reasonable care in the evaluation of a business opportunity
The party in a franchise contract that specifies the methods to be followed and the terms to be met by the other party
A rule that prescribes that the franchisor must disclose certain information to prospective franchisees
A provision in a franchise contract prohibiting the franchisee from severing the relationship and becoming a competitor
The franchisor's selling of another franchise location within the market area of an existing franchise
The operation of several franchise organizations within a single corporate structure
Actions by franchisors to void the contracts of franchisees in order to sell the franchise to someone else and collect an additional fee
The price at which the property would change hands between a willing buyer and willing seller, with both parties having reasonable knowledge of relevant facts
A detailed statement that provides the accepted format for satisfying the franchise disclosure requirements of the FTC
The operation of a retail franchise within the physical facilities of a host store
Individuals or firms that obtain the legal right to open several franchised outlets in a given area
A business model involving a business owner who licenses trademarks and methods to an independent entrepreneur
Ownership by a single franchisee of more than one franchise from the same company
Bringing two or more franchise brands together under one roof
Responses:
business format franchising
Franchise Disclosure Document
churning
non-disclosure agreement
multiple-unit ownership
franchisee
business brokers
piggyback franchising
noncompete clause
fair market value
franchise
franchise contract
Franchise Rule
due diligence
encroachment
co-branding
multibrand franchising
franchisor
master licensee
product and trade name franchising
area developer

Correct Answer:

A franchise arrangement whereby the franchisee obtains an entire marketing and management system geared to entrepreneurs
A franchise agreement granting the right to use a widely recognized product or name
An agreement in which the buyer promises the seller that s/he will not reveal confidential information or violate the seller's trust
An entrepreneur whose power is limited by a contractual relationship with a franchising organization
The legal document between a franchisor and a franchisee
An independent firm or individual acting as a middleman or sales agent with the responsibility of finding new franchisees within a specified territory
Specialized brokers that bring together buyers and sellers of businesses
The exercise of reasonable care in the evaluation of a business opportunity
The party in a franchise contract that specifies the methods to be followed and the terms to be met by the other party
A rule that prescribes that the franchisor must disclose certain information to prospective franchisees
A provision in a franchise contract prohibiting the franchisee from severing the relationship and becoming a competitor
The franchisor's selling of another franchise location within the market area of an existing franchise
The operation of several franchise organizations within a single corporate structure
Actions by franchisors to void the contracts of franchisees in order to sell the franchise to someone else and collect an additional fee
The price at which the property would change hands between a willing buyer and willing seller, with both parties having reasonable knowledge of relevant facts
A detailed statement that provides the accepted format for satisfying the franchise disclosure requirements of the FTC
The operation of a retail franchise within the physical facilities of a host store
Individuals or firms that obtain the legal right to open several franchised outlets in a given area
A business model involving a business owner who licenses trademarks and methods to an independent entrepreneur
Ownership by a single franchisee of more than one franchise from the same company
Bringing two or more franchise brands together under one roof
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