Name: ______________________________________ Date: ________ Score: ______

Mktg.10 – Franchising
Quiz 2 – Chapter 2

MULTIPLE CHOICE: On the space provided before the number, write the letter of the correct
answer.

1. Definition:
 What is franchising in business strategy?
a) A marketing technique
b) A legal agreement
c) A financial investment
2. Franchise Model:
 Which of the following is a characteristic of a franchise model?
a) Centralized control
b) Independent operation
c) Limited support
3. Benefits:
 What is a potential benefit of franchising for the franchisor?
a) Reduced financial risk
b) Limited brand expansion
c) Decreased brand awareness
4. Franchise Fee:
 What does a franchisee typically pay to the franchisor for the right to operate
under their brand?
a) Licensing fee
b) Royalty fee
c) Application fee
5. Training and Support:
 Why is training and support crucial in a franchising strategy?
a) To limit franchisee independence
b) To ensure brand consistency
c) To discourage franchise growth
6. Franchise Agreement:
 What legal document outlines the terms and conditions of the franchise
relationship?
a) Business plan
b) Franchise agreement
c) Partnership contract
7. Franchisee Selection:
 What factors should a franchisor consider when selecting franchisees?
a) Financial stability
b) Random selection
c) Lack of experience
8. Brand Consistency:
 Why is maintaining brand consistency important in a franchise system?
a) Allows for creative freedom
b) Attracts different customer bases
c) Ensures uniform customer experience
9. Challenges:
 What is a common challenge faced by franchisors?
a) Limited expansion opportunities
b) Difficulty in maintaining brand standards
c) Decreased franchisee autonomy
10. Success Indicators:
 How can the success of a franchising strategy be measured?
a) Number of franchise locations
b) Decrease in brand recognition
c) Lack of franchisee satisfaction surveys