Chapter 8: Start-ups and Franchises
Quiz
Which of the following are not possible routes to market entry for a small business owner / entrepreneur?
- Start up
- Franchise
- Corporate venture
- Outright purchase
- Buy out
A franchise is a legally separate enterprise operating in some way under the umbrella of another organisation. True/False?
- True
- False
All franchises involve setting up using a complete format developed by another company, including trade name etc. True/False?
- Ture
- False
Under format franchising which of the following would not be expected to be included under the agreement?
- Trade name
- Standardised business presentation
- Age of franchisee
- Products or services
- Operating systems and manuals
Which of the following is not a main legal form possible for the small firm?
- Sole trader
- Limited company
- Management buy-out
- Partnership
- Cooperative
Generally speaking the risk involved in launching as a franchise is greater than that as a start up. True/False?
- True
- False
A big advantage for franchisees is that they can learn from the past experience of the franchise company. True/False?
- True
- False
In which century did what we would recognise as the franchising model first develop?
- Sixteenth
- Seventeenth
- Eighteenth
- Nineteenth
- Twentieth
Which of the following is not reflected in the profile of the ‘average’ franchisee in the UK?
- 82% of all franchisees are married
- The average age of new entrants is 42
- 72% of new franchisee recruits are male
- Over 70% of franchisees have direct previous experience of working in small business
Format franchising has yet to be carried out in the context of social enterprise. True/False?
- True
- False