If a business has an annual loan payment of $700,000 and the annual NOl is $775,000. the loan debt coverage is 1.1%. If the financial institution requires coverage of 1.2%, the following term would be used to describe the situation the hotel owner is facing: a. Under Capitalized b. Overleveraged c. Foreclosure status d. Cap Rate default Which of the following is not a benefit of franchising for the franchisor? Improved operational control and quality Growth without capital investment Fee's Increased brand awareness and exposure a. b. c. d. Which of the following is not a benefit of franchising for the franchisee ? Receive a proven operating system Guidance on building plans and equipment requirements Menu and recipe development Flexibility in changing menu standards to meet local needs a. b. c. d. Which of the following statements regarding franchising is true? Royalty Fees are most commonly calculated on profits Royalty and Marketing Fees are the same for all brands of a chain Fees of the most successful brands are usually higher to the franchisee A protected territory usually covers all brands managed by the franchise company a. b. c. d. Which of the following statements is least accurate regarding 3d Party or Independent Management Companies? a. b. c. d. Basic Fees, Incentive Fees, or Basic+ Incentive Fee structures are common They are not common in the restaurant industry They commonly operate a variety of branded hotels They prefer contracts based more on Incentive Fees since it guarantees they will make more for managing the business Which of the following would not be the responsibility of the Asset Manager ? Run the day to day operations of the hotel Set the long term strategic plan for the hotel Participate in the hiring decision for the General Manager Provide input on revenue management strategies a. b. c. d