41. Bart is meeting v a representative that GHI, a franchisor. He has actually received information around the franchisor’s finances, experience, size, and also involvement in litigation. Bart has been given:

a. A grasp license.

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b. A non-disclosure statement.

c. A franchise rule.

d. A franchise disclosure document.

42. What concern is the least crucial when occurring a franchise from an live independence business?

a. That will build the operations manual?

b. Is the business replicable?

c. Just how will development be financed?

d. What professional assistance will be necessary for legitimate matters?

43. One feasible disadvantage of becoming a franchisor is:

a. Adhering to all the government regulations.

b. The price of franchising above the franchise fee.

c. The price of screening prospective franchisees.

d. Giving training to new franchisees.

44. Cameron has developed a successful business and also would like to expand. He is considering ending up being a franchisor. Before taking the step, Cameron should:

a. Make certain his business model is reproducible.

b. Have actually a technical writer produce an owner’s manual.

c. Partner with a lender to market franchisee financing.

d. Rental a understand licensee to find prospective franchisees.

45. One of the most crucial features the the franchise contract is the provision connected to

a. The sale or deliver of the franchise to a government entity.

b. Transforms in management.

c. Termination and transfer that the franchise.

d. Discontinuation of contracts with suppliers.

46. The offer and sale of a franchise room regulated by

a. State regulations exclusively.

b. Federal legislations exclusively.

c. Both state and also federal laws.

d. Federal trade Commission regulations exclusively.

47. Darin is assembling a team of specialists to help him with the procedure of examining a franchise opportunity. This team must include:

a. A union representative, a lawyer, and also a technological writer.

b. One attorney, an accountant, and a banker.

c. A banker, an accountant, and also a contract law consultant.

d. One accountant, an additional franchisee, and a banker.

48. I beg your pardon of the adhering to reasons because that buying a organization is additionally a factor for to buy a franchise?

a. Reduction of uncertainty

b. Gaining goodwill

c. Bargain price

d. Quick start

49. Many franchise specialists recommend the the FDD it is in examined closely by

a. Regulators that specialize in such documents.

b. A franchise attorney and an accountant.

c. Everyone associated with the potential startup.

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d. Providers that may be used if the startup is successful.

50. Edmond is negotiating to acquisition an currently business. One provision he have to write right into the revenue contract is: