Evening Education Series: Weighing Business Decisions vs. Legal Risks in Designing a Franchise Strategy

Answer the following questions based on the educational sessions held at the Evening Education Series session: Weighing Business Decisions vs. Legal Risks in Designing a Franchise Strategy for 300 CFE Education Credits towards your program requirements.

Please reach out to Mary MacDonald, Senior Manager, Education to discuss strategies to meet your CFE program requirements and inquire about adding credits for accredited educational programming from the past year. You can contact Mary MacDonald at mmacdonald@cfa.ca for personalized guidance and assistance with completing your CFE journey.

1 / 10

In designing a franchise system, you only need to take into account the business realities of your brand and operation.

True

False

2 / 10

The legal and regulatory requirements of franchising will impact how a franchise system is designed and developed.

True

False

3 / 10

Anything that increases a franchisor’s potential liability should be unequivocally avoided.

True

False

4 / 10

Are Brand Standards the same as Day-To-Day Control of the franchised location’s business?

Yes

No

5 / 10

Franchisors have no ability to control franchisee’s pricing strategies

True

False

6 / 10

Where might it be appropriate for a franchisor to set franchisees’ prices (select all that apply):

Maximum prices;

solely to maximize franchisor’s revenue;

Promotional pricing (“dollar-meal”);

all of the above;

none of the above

7 / 10

Franchisors do not have to guarantee that franchisees will pay the lowest possible price in a supply chain that the franchisor earns revenue on.

True

False

8 / 10

It is usually appropriate for a franchisor to (select all that apply):

Set appearance standards for franchisee’s employees;

Require approval for all of franchisee’s hiring decisions;

Set hiring criteria that franchisee must follow;

all of the above;

none of the above;

9 / 10

Franchisors should never allow franchisees’ employees to use the franchisor’s brand on their personal social media accounts

True

False

10 / 10

Allowing franchisees to control their own social media presence is risky but might make sense for a brand who values direct interaction between the consumer and the specific location they visit.

True

False

Your score is