When evaluating a franchised opportunity, which of the following would you not find it necessary to do?
A)Determine the territory of operation and whether it is an exclusive territory for the length of time of the franchise agreement.
B)Avoid investigating the financial strength of the franchisor because it will be you who is making the money.
C) Ask for sales and profit performance of similar franchises, and verify the information you received.
D)Explore the market and the competition for same or similar products and services.

Question

Quizplus · Accepted Answer

Avoiding investigating the financial strength of the franchisor is not a necessary step in evaluating a franchised opportunity. It is important to determine the territory of operation, ask for sales and profit performance of similar franchises, and explore the market and competition. Knowing the financial strength of the franchisor is also crucial in determining the franchise's long-term viability.

When Evaluating a Franchised Opportunity, Which of the Following Would