DON HONORIO VENTURA STATE UNIVERSITY

COLLEGE OF BUSINESS STUDIES- 1st SEMESTER, SY 2023-2024

MKTG P301- FRANCHISING
MKTG 3A QUIZ # 3

Name: _______________________________________________ Score: _________________

Part I: Identification. Identify what is being asked.

DEMAND 1. Does the product or service generate repeat business?
BRAND 2. How well known is the franchise name?
EXPERIENCE 3. Has the franchisor been in business long enough to have
established the type of business strength you are seeking?
YOUR ABILITIES 4. Do you have the technical skills or experience to manage
the franchise?
COMPETITION 5. Is there a specialty or niche you can capture?
TRAINING 6. What kind and how much training and support does the
franchisor provide?
COST 7. Can I afford to buy this franchise?
DEMAND 8. Will the demand grow in the future?
COMPETITION 9. Do they offer the same products and services at the same
or lower prices?
YOUR ABILITIES 10. Do you have the business skills to manage the franchise?
BRAND 11. Does it have a reputation for quality?
COST 12. How much money will this franchise cost before it
becomes profitable?
COST 13. Can I make enough money to make the investment worth
my time and energy?
DEMAND 14. Is there enough demand in your area for the franchisor's
products or services?
EXPANSION PLAN 15. Is the franchisor planning to grow at a rate that is
sustainable?
 Part II On this Multiple-Choice Test -Each question is followed by a series of possible answers or
choices. Read each question and choose the most appropriate answer.

A. Independence B. Personal C. Freedom to D. Longer E. High Riks of

satisfaction make working hours failure
choices

F. Stress and G. The business is H. An existing I. Associated J. Existing

Health issue already up and franchise risk customer base
running has a story Consideration and market
share

I. Associated risk Consideration 16.) When you buy an existing business, the risk is already
calculated by the existing owner. You do not need to
recalculate the associated risks with that specific business.

H. An existing franchise has a story 17.) Instead of guessing whether your new business will be
successful, you can analyze actual historical financial data to
determine whether it is a good business.

G. The business is already up and running 18.) An existing business is a known entity. It has
an established and historical track record. It has a customer or client base, established vendors, and
suppliers. It has a physical location with furniture, fixtures, and equipment in place.

E. High Riks of failure 19.) When you start a new business, you're taking a chance. You don't
know if you're going to succeed or fail.

F. Stress and Health issue 20.) As a business owner, you are the face of the business and you
"wear many hats". There’s a non-stop list of concerns to deal with - competition,
employees, bills, equipment breakdowns, customer problems, supplier shortages,
and late deliveries

C. Freedom to make choices 21.) As an entrepreneur and business owner, you have the ultimate
authority to make decisions about hours, schedule, location, interior design, menu,
product selection, and customers.

E. High Riks of failure 22.) There are no guarantees when you start a new business.

G. The business is already up and running 23.) You will also avoid all the issues of choosing a
location, building out a site, and reviewing demographic studies

G. The business is already up and running 24.) The business already has existing employed
people, suppliers, and customers. Also, the owners will show you the ways to
reduce the risks as he/she did before.

A. Independence 25.) As a business owner, you’re your own boss. You can’t get fired. More
importantly, you have the freedom to make the decisions that are crucial to your
own business success.

B. Personal satisfaction 26.) As a business owner, you’ll be able to work in a field that you really
enjoy. You’ll be able to put your skills and knowledge to use.
C. Freedom to make choices 27.) This is your business! You make the rules. You’re not restricted
by the standards and procedures of your boss or corporate culture.

Part III: Enumeration

28-31 Steps for beginning a business

28. WHAT IS BUSINESS?
29. IS THERE A MARKET?
30. CAN YOU AFFORD IT?
31. CAN YOU MAKE ENOUGH MONEY, TO MAKE IT WORTHWHILE?

32-36 How do you investigate a franchise?

32. FIND OUT WHAT FRANCHISES ARE AVAILABLE
33. EVALUATE THE STRENGHT OF THE FRANCHISORS
34. VISIT AND TALK WITH EXISTING FRANCHISEES
35. VISIT /TALK WITH FRANCHISE WHO HAVE LEFT THE SYSTEM AND FIND
OUT THEY LEFT
36. VISIT THE FRANCHISOR HEADQUARTERS

37-40 What are the criteria for selecting a franchise?

37. COST
38. TRAINING
39. DEMAND
40. EXPERIENCE