Franchising

is a set of moral standards for judging whether something is right or wrong

= ethics

What is corporate social responsibility?

=a. is the concern of businesses for the welfare of society as a whole.

helps students develop a solid grounding in the skills that they can apply in the workplace.

=business

Domino’s Pizza has more than 14,000 stores worldwide.

=True

A situation where a person must choose from a set of actions that may be ethical or unethical.

=ethical issue

Product distribution franchise, franchisee simply sells the franchisor’s products without using
the franchisor’s method of conducting business.

=True

According to International Franchise Association, franchising defined as;

=c. Continuing relationship in which the franchisor provides a licensed privilege to do business,
plus assistance in organizing, training, merchandising and, management, in return for a
consideration from the franchisee

A franchisor is a one

=a. Who owns business concept, brand and grants the franchisee the right to do business under
their trademark or trade name.

UFOC stands for

=Uniform Franchise Offering Circular

The franchisor’s identifying marks, brand names, and a logo that are licensed to the franchisee.

=a. Trademark

A franchisee is a one

=d. Who has been granted the rights to conduct business using franchisor's know-how,
franchisor's brand, and under the system of the franchisor

_________________ the regular payment made by the franchisee to the franchisor, usually
based on a percentage of the franchisee’s gross sales

=Royalty

The franchisee is not completely independent. Franchisees are required to operate their
businesses according to the procedures and restrictions set forth by the franchisor in the
franchise agreement.

=True

Business format franchising involves

=b. The franchisor permits the franchisee gets to use the products, services, trade name,
trademark and the complete or entire method to operate the business itself or the, prescribed
business format, including the detailed marketing plan and operations manuals

The legal written contract between the franchisor and franchisee which tells each party what
each is supposed to do

=c. Franchise Agreement

nder this arrangement, a chain of retailers organized by wholesaler unite into a voluntary chain
of stores, who together would offer a well orchestrated programme of merchandising and
retailing to achieve an efficiency.

=a. Wholesaler sponsored group retailers

a contractual arrangement of franchisor, a parent company and an individual, it allows the

franchisee to run the business under the firms banner

=Franchises

Direct Franchising the franchisor grants the franchisee the right to open one franchised business
at one location with a specified geographic range that will be protected from other franchised
businesses of the same system

=True

A fully integrated vertical marketing system develops when

=b. Both A and B

Product development known as Format Development strategy adopted by the retailers as a

strategy to grow involves
=d. Creating another format to retail either the same or different merchandise to the same or
different shoppers

________________________retailers come together to organize a wholesaling business also

known as retailer cooperative owned and organized by members and offer variety of services to
the members (retailers) to help them compete with corporate chain of stores by harnessing
competitiveness through scale economies

=d. Retailer owned cooperatives

Master franchising is typically employed by foreign franchisors so that a resident of the territory
can expand the system in areas which the franchisor may not be familiar with.

=True

________________________under this agreement, the franchisor grants the franchisee the

right to operate several or multiple franchised businesses within the geographical area.

=c. Area development agreement