7.1 Decide to purchase, join, or start a business

True

A business broker is a person who sells businesses for a living

True

Althiugh recommended, it is not necessary to consult an attorney before purchasing a franchise

True

The owner of a business may sell the business because of insufficient sales or profits

True

The owner of a franchise must pay a weekly or monthly royalty fee to the seller of the franchise

True

A disadvantage of buying an existing business is that it may be poorly located

False

A disadvantage of owning a franchise is that equipment and supplies can be more expensive because you must buy them from the franchisor

True

A franchisee is a person who purchases a franchise agreement

inspect a list of all customers

When buying a business, you should do all of the following except

True

When purchasing an existing business, you should find out why the business is being sold, inspect the facility and analyze the financial accounts for the last three years

franchise owners can benefit from the successes of other franchises

Which of the following is not a disadvantage of owning a franchise?

management and technical training

Franchisers may offer

an initial franchise fee

The amount paid for the right to run a franchise is

False

The intial franchise fee may be $100,000 and is usually refundable