Mc-King Chicken Brian decided to open a local franchise of the well-known Mc-King Chicken, a fast-food restaurant. Before he took the initiative to open the franchise, he tried to weigh all the advantages and disadvantages. He decided, based on his research and understanding, that it would be beneficial to open a local fast-food restaurant. Mc-King has become quite successful domestically, and now it is exploring the possibility of opening franchises internationally. The company hired an international agency to help it learn what and what not to do. After the agency met with the managers of Mc-King a few times, the Mc-King management decided they would go ahead with their decision to expand internationally.

ABCDE

6.

Refer to Mc-King Chicken. When Brian opens the Mc-King Chicken restaurant in his town, he would be known as the

a.	franchisor.
b.	franchising.
c.	franchise.
d.	franchisee.
e.	franchises.

ABCDE

7.

Refer to Mc-King Chicken. Which of the following would not be an advantage of a franchise?

a.	He gains fast and well-controlled distribution.
b.	He has more capital available to expand.
c.	Outlets are maintained and operated according to a set plan.
d.	He has the opportunity to start a business with limited capital.
e.	Success will cause another outlet to be opened nearby.

ABCDE

8.

Refer to Mc-King Chicken. Which of the following would be an advantage for Brian?

a.	Guidance from the franchisor
b.	Franchise holders paying for their security
c.	Disagreements increasing
d.	Contract disputes
e.	The franchisor maintaining a great deal of control

ABCDE

9.

Refer to Mc-King Chicken. The international agency advising Mc-King would have recommended that it do all of the following except

a.	understand the laws and regulations governing franchising in each country.
b.	understand that management must be from the home country to teach the new employees the way things are done.
c.	thoroughly research the competitive situation.
d.	check trade laws before buying a franchise in another country.
e.	find out what support the franchisor offers in each country.

ABCDE

10.

Refer to Mc-King Chicken. The international agency advising Mc-King would have made which of the following recommendations?

a.	Be aware that less money is needed to fund international operations.
b.	Remember that strong local management is needed to keep an international franchise going.
c.	Plan for the local competition to be weak.
d.	Assume that customers everywhere need or want what the franchise offers.
e.	Expect hiring, training, and marketing practices to be identical in all countries.