Republic of the Philippines
Western Philippines University
A STRONG PARTNER FOR SUSTAINABLE DEVELOPMENT
ACADEMIC AFFAIRS
Name: Johnson S. Apungan Program/Year/Section: BSBA-3-B
Score: ____________
_Final_ Examination
____PMME 104 - Franchising____
(Course No. & Course Title)
Directions. Multiple Choice: Choose the letter of the correct answer. Write your answer on the
space provided.
A 1. A method of expansion that new or established franchises can use to move into new
geographical areas and markets.
a. International franchising
b. Franchising
c. Franchise
C 2. It relates to making, operating and ending franchise relationships.
a. International Franchising
b. International Law
c. Franchising Law
B 3. An independent store owner in a similar business converts his store into a franchise.
a. Passive Franchising
b. Conversion Franchising
c. Local Franchising
C 4. It is payable by the franchisee to the franchisor, usually at the time when the franchise
agreement is signed.
a. Working Capital
b. Franchise investment amount
c. Upfront-fee
A 5. Franchisee is interested in providing capital but not in managing the franchise.
a. Passive Franchising
b. Conversion Franchising
c. Local Franchising
B 6. The amount of money estimated for complete set up of a franchisee’s business, including the
initial investment, the working capital, and subsequent additions to inventory and equipment
deemed necessary for a fully operational franchise.
a. Unencumbered funds
b. Total investment
c. franchise fee
A 7. It is the revenue earned by the franchisee and is derived after deducting the cash discounts,
employee discounts, markdowns and free sample.
a. Net Sales
b. Gross Profit
c. Net Profit
C 8. This ratio measures the business profitability
a. activity ratio
b. leverage ratio
c. Profitability ratio
B 9. it is a measure of the financial prowess of a franchisee and shows a relationship between the
WPU-QSF-ACAD-14A Rev. 00 (10.02.19)
Republic of the Philippines
Western Philippines University
A STRONG PARTNER FOR SUSTAINABLE DEVELOPMENT
ACADEMIC AFFAIRS
debt and equity as well as between the total assets and net worth of the franchisee.
a. activity ratio
b. leverage ratio
c. Profitability ratio
A 10. Franchise Agreement are subject to the general provisions of the _____ governing
obligations and contracts.
a. Civil Code
b. Corporation Code
c. Special Laws
Directions: Enumerate the following:
1. Different types of International Franchise Models (4 points)
a. Master franchising
b. Regional Franchises
c. Direct Franchising
d. Area Development
2. Applicable provisions in regulating Franchise Agreements (4 points)
a. Intellectual Property Code (IPC)
b. Civil code
c. Corporation code
d. Relevant Special laws
3. Different costs associated with opening a new franchise (5 points)
a. The Franchisee fee
b. The Working Capital
C. Accounting and legal fees
d. Cost of supplies
e. Cost of inventory
Directions: IDENTIFICATION Choose your answers inside the box, and write on the space
provided.
COPORATION CODE LIABILITIES
FRANCHISE ATTRITION CONFLICT MANAGEMENT
ASSETS DATA PRIVACY ACT OF 2012
COMMERCIAL PRACTICE PASSIVE FRANCHISING
COPORATION CODE 1. It sets out the requirements for registering a business in the Philippines.
DATA PRIVACY ACT OF 2012 2. It protects individuals from unauthorized processing of personal
information by regulating the collection, recording, organization, storage, updating or
modification, retrieval, consultation, use, consolidation, blocking, erasure or destruction of
personal data.
COMMERCIAL PRACTICE 3. Franchising agreements usually contain a right to renew the
contract without having to execute a new franchise agreement.
CONFLICT MANAGEMENT4. If the friction between the franchisors and franchisees is not
addressed in the beginning, it could cause a rift between them and severance of relationship.
WPU-QSF-ACAD-14A Rev. 00 (10.02.19)
Republic of the Philippines
Western Philippines University
A STRONG PARTNER FOR SUSTAINABLE DEVELOPMENT
ACADEMIC AFFAIRS
FRANCHISE ATTRITION 5. If expectations on financial returns or franchisor support in business
are not met, there is bound to be strain in the relationship and may lead to franchisee leaving the
system
ASSETS 6. These are items which are owned by the franchisee and are assigned a monetary value.
The store space, equipment, stock, receivables are listed under assets
LIABILITIES 7. These are the items which the franchisee owes to others. These are the financial
obligations of a franchisee that arise during the conduct.
Directions. ESSAY (10 Points each)
1. Briefly discuss Franchising Law
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2. Discuss the grounds for terminating a contract
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Rubric for essays and discussions
Score Criteria
- Presented important and accurate
information
Very Good (10) - The idea presented was organized and
highly informative
- Virtually no spelling or grammar errors
- Identified the topic and provided
information
- Presentation is somewhat organized and
Good (6)
clear
- Multiple spelling and grammatical
errors
Needs Improvement (0) - No answer
Prepared by:
______________
Ziedwrick A. Dicar
Faculty
Gellie S. Mangaccat
WPU-QSF-ACAD-14A Rev. 00 (10.02.19)
Republic of the Philippines
Western Philippines University
A STRONG PARTNER FOR SUSTAINABLE DEVELOPMENT
ACADEMIC AFFAIRS
Faculty
WPU-QSF-ACAD-14A Rev. 00 (10.02.19)
