FRANCHISING TRUE OR FALSE

Is Franchise Disclosure Agreement a method of distributing products or services involving a franchisor, who establishes the brand’s trademark or trade name and a business system, and a franchisee, who pays a royalty and often an initial fee for the right to do business under the franchisor's name and system?

• TRUE

• FALSE

Is Franchise Disclosure Agreement a legal disclosure document that must be given to individuals interested in buying a U.S. franchise as part of the pre-sale due diligence process?

• FALSE

• TRUE

The word "ethical" comes from the Greek word "ethos" meaning "moral character", and describes a person or behavior as right in the moral sense - truthful, fair, and honest

• TRUE

• FALSE

Some franchisors do not see franchising as a get-rich-quick scheme and become more interested in selling franchises than in using franchising as a legitimate means of distributing their product or services.

• FALSE

• TRUE

For a franchise to be successful, it must run on a model whereby new franchisees can be trained and supported to set up the business in multiple locations, with all franchisees delivering the franchisor's product or service to the same quality standards using the franchisor's processes and procedures

• TRUE

• FALSE

The PFA is a commercial relationship based on a contractual agreement between two independent business parties, the franchisor (the seller of the business proposition) and the franchisee (the buyer).

• FALSE

• TRUE

Ethics examines the rational justification for our moral judgments

• TRUE

• FALSE

The IFA is a method of distributing products or services involving a franchisor, who establishes the brand’s trademark or trade name and a business system, and a franchisee, who pays a royalty and often an initial fee for the right to do business under the franchisor's name and system.

• FALSE

• TRUE

Bankruptcy is one of the Federal Rules and Regulations

• TRUE

• FALSE

Terms of Agreement is one of the Franchise Requirements

• FALSE

• TRUE