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