1.1

Explain franchise obligations that might be required by a franchise agreement in relation to training. Where would these obligations be documented?

1.2.a

How would you develop and document programs to ensure your franchisees are complying with their obligations (financial and other) to the franchisor? (Use the example of a frozen yoghurt outlet or another franchise operation of your choice.) Would you seek professional advice in developing these programs, and if so, from whom?

1.2.b

Outline five pieces of relevant legislation relating to franchising operations. Explain where you can obtain a copy of each.

1.3

Describe all the reports you would require from a franchisee in a window cleaning franchise (or another franchise operation of your choice) that give an indication of the health of the franchisee's business. These should include financial reports as well as non-financial reports.

2.1

One of your franchisees argues that they do not need the franchisor to stipulate procedures for them to implement. They want to establish their own procedures. What should you do under the circumstances?

2.2.a

You are the franchisor of a chain of DVD rental franchises giving detailed instructions to a mystery shopper. Instructions should be in the form of a list of actions the shopper is to perform, and should be designed to give you maximum information regarding the outlet's performance, its treatment of customers and its compliance with franchising obligations.

Describe the tasks you would expect the mystery shopper to complete and what you would expect the process to reveal.

2.2.b

What steps will you take if your monitoring activities reveal that a franchisee is not complying with their obligations to use the franchisor's colour scheme and to display the franchise logo prominently?

2.3.a

What major reports would you require of a franchisee in a pizza delivery franchise (or another franchise operation of your choice)? Provide at least four examples in a bullet point list.

2.3.b

How would you ensure reports provided by a franchisee were complete and accurate, and delivered on time?

2.4.a

A new franchisee has poor sales figures and you have begun receiving customer complaint reports. You have also received a bad report from a mystery shopper. You carry out a field visit then arrange a meeting with the franchisee to suggest additional training. The franchisee refuses, saying the initial training was of low quality and a waste of time and all they need is to be left alone to improve the business. They become increasingly hostile.

What actions could you take to resolve the situation and to negotiate with the franchisee to prevent the conflict escalating into a dispute needing mediation? Provide at least five examples.

2.4.b

At a franchisee meeting there are complaints about having to contribute to a marketing and advertising fund. How would you manage the situation and explain to the franchisees that the fund is used to promote new and existing franchises and the franchise operation as a whole? Explain the kinds of marketing efforts you would use this fund for.

2.5.a

Explain the fundamental of the Franchising Code of Conduct. Explain how it relates to franchisors, and their responsibilities with regard to disputes with franchisees.

2.5.b

If issuing a notice of dispute does not resolve the dispute within 21 days, what action should you take?

3.1

Monitoring reports from franchisees have revealed that many, but not all, franchisees are having cash flow problems. What systems and procedures should you review in order to help identify the relevant issues? Provide at least five examples in a bullet point list.

3.2.a

Select and describe a franchising business that you might operate. Explain how you would investigate reports indicating a fall in numbers of new customers across your franchise. What reports and monitoring data would you examine?

3.2.b

You find the main cause is poor or ineffective advertising. What marketing improvements could be made to attract new customers

3.2.c

After reviewing your franchise operations, you think expanding the business by recruiting more franchisees might be a good next step. What actions would you take and what factors would you consider when deciding whether to expand or not? (Include in your answer the type of franchise being considered.)

3.3.a

How would you inform franchisees that you want to improve the effectiveness of the franchise operation by introducing IT technologies into the operation, including a franchise management system, a website and an intranet?

3.3.b

Explain how you would deal with the concerns of franchisees who are not computer literate and do not understand the terminology.