A Potential Franchisee Should Seek Answers to All of the Following

question 83

Multiple Choice

A potential franchisee should seek answers to all of the following questions while assessing the financial stability of the franchisor,except:

• A)How many franchises are in the organization?
• B)Are most of the profits of the franchise a function of fees from the sale of franchises or from royalties based on profits of franchisees?
• C)What are the chances of further expansion of the company?
• D)Does the franchisor have management expertise in production,finance,and marketing?

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Definitions:

Inaccurate Information

Information that is incorrect or not true, potentially leading to misunderstandings or errors.

Audience's Level

The degree of understanding, interest, and expectations the audience has regarding a particular subject or communication.

Market Potential

The estimated maximum total sales revenue of all suppliers of a product or service in a certain market over a specific period.

Recommendations

Advice or suggestions given by someone with expertise or authority in a particular area, or a formal statement supporting someone's abilities and character.