There Is One Thing Every Franchise System Knows

question 1

Multiple Choice

There is one thing every franchise system knows.If you don't know how you want to be positioned in the marketplace,and don't know the value propositions you uphold,then you will be:

• A)ahead of all other competitive franchise systems operating in your market area
• B)positioned in the market-place and educated on that position by your competition
• C)provided sufficient time to determine these factors for yourself within the first 3-5 years of business
• D)grateful for the freedom provided by the franchisor for you to "do your own thing."

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Definitions:

Variable Cost

A cost that changes in proportion with the level of output or activity.

Fixed Costs

Business expenses that remain unchanged regardless of the level of production or sales activities, such as rent, salaries, and insurance.

Breakeven Volume

The quantity of output or sales at which total revenues equal total costs, resulting in no profit or loss.

Sales Revenues

The total amount of money generated from sales of goods or services by a company before any expenses are subtracted.