Title: Franchising
Course: Demo 1

Q: A franchise:
- provides a proven product, business model and brand to the franchisee
- may require a significant up-front investment
- allows an individual to run a business that is owned by a large corporation
A: provides a proven product, business model and brand to the franchisee; may require a significant up-front investment

Q: Examples of franchises include:
- Subway restaurants
- Jiffy Lube car servicing
- Deloitte, Haskins & Sells accounting firm
A: Subway restaurants; Jiffy Lube car servicing

Q: Benefits of a franchise include:
- access to a template for the business
- access to services from the franchiser
- the elimination of all business risks
A: access to a template for the business; access to services from the franchiser

Q: Risks of a franchise include:
- the high cost of start-up
- potential that the franchiser will fail to deliver promised resources and support
- significant limitations in the range of franchise options that are available in the U.S.
A: the high cost of start-up; potential that the franchiser will fail to deliver promised resources and support

Q: A franchisee is generally expected to pay:
- royalty fees for support from the franchiser
- a share of national advertising costs
- a fee to subsidize the start-up costs for future franchisees
A: royalty fees for support from the franchiser; a share of national advertising costs