Exercise 4. In each of the following, select the word or phrase which best completes the statement or answers the question

Exercise 3. Answer the following questions.

Exercise 2. In pairs, decide if the points below refer to (a) franchisees or (b) franchisors.

Exercise 1. Match the English words with their Russian equivalents.

1. franchisee A. сорт, качество, торговая марка

2. failure B. франшиза, особое пра­во, особый контракт

3. franchisors C. рас­ходы

4. franchise D. торговое предприятие, пользующееся правом торговать c продуктами промышленного предприятия на льготных условиях

5. contribute E. одинаковая плата

6. trademark F. отвечать, исполнять

7. to comply with G. розничный торговец

8. brand H. вносить, предоставлять

9. flat fees I. компания, имеющая патент на деятельность

10. retailers J. торговая марка

11. expenses K. банкротство, несостоятельность

1. They can easily get advice on how to deal with specific problems.

2. They do not have to borrow large amounts of capital to expand.

3. They must respect certain rules.

4. They have to buy supplies from particular sources.

5. They are responsible for national advertising.

6. They can only sell certain products.

7. They have to seek approval before selling the business.

8. They provide regular reports on the level of sales.

9. They can develop their business without having to deal with the problems of recruiting and managing personnel.

1. How would you define a franchise? Is it a new and popular form of running business?

2. What rights are given by a franchise?

3. What are the contacts between franchisor and franchisee based on?

4. Franchising offers advantages and has disadvantages for a franchisor and a franchisee. What are they for both parties?

5. What categories are franchises classified into?

6. What is a trade-mark franchise?

1) A franchised business is owned by

a. government с. stockholders

b. franchisor d. franchisee

2) A franchise business does not have to be

a. large с. expensive

b. a fast-food operation d. all of these

3) Franchises include all of the following kinds of business except

a. retailing с. government services

b. wholesaling d. manufacturing

4) Franchises will probably

a. increase in number с remain the same

b. decrease in number d. be made illegal

5) Which one of the following would most likely not be a franchised business?

a. radio station с. gas and electric company

b. auto dealership d. gas station

6) The right to grant a franchise agreement is reserved to the

a. parent company

b. franchisee

с. vendor

d. license

7) Franchise fees are

a. paid to the franchisor с. based on the size of the territory

b. based on sales volume d. could be any or all of these

8) There are franchise agreements that have clauses covering

a. sales quotas c. purchasing and use of products

b. termination agreements d. all of these topics

9) A franchise is a good way for a person to

a. get business experience

b. get started in business with limited capital
с. get rich

d. meet competition

10) One of the disadvantages of owing a franchise business is that

a. the parent companies have standardized products and procedures

b. a franchise business requires less cash to start

c. the franchise may have a better chance of succeeding

d. the owner cannot sell other companies' products

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