Thinking About a Franchise Reading Answers

Mar 29, 2024

Thinking about a Franchise Reading Answers is an academic reading answers topic. Thinking about a Franchise Reading Answers have a total of 13 IELTS questions in total. In the first 7 questions, you have to choose an appropriate paragraph from the passage. The next 6 questions are fill-in-the-blanks.

Candidates should read the IELTS Reading passage thoroughly to recognize synonyms, identify keywords, and answer the questions below. IELTS Reading practice papers, which feature topics such as Thinking about a Franchise Reading Answers. Candidates can use IELTS reading practice questions and answers to enhance their performance in the reading section.

Check: Get 10 Free IELTS Sample Papers
Check: Register for IELTS Coaching - Join for Free Trial Class Now

Section 1

Read the text below and answer Questions 21-27.

Thinking About a Franchise?

Want to be your own boss, but not willing to take on the risk of starting your own business from scratch? Franchising can be a great alternative if you want to have some guidance in the start-up phase of the business. A franchise or chain is a business model that involves one business owner licensing trademarks and methods to an independent entrepreneur.

There are two primary forms of franchising. Product/trade name franchising is when the franchisor owns the right to the trademark and sells that right to a franchisee. Business format franchising is when the franchisor and franchisee have an ongoing relationship, and the franchisor often provides a full range of services, including site selection, training, product supply, marketing plans and even assistance in obtaining financing.

Before you decide to franchise, you need to do your research. You could lose a significant amount of money if you do not investigate a business carefully before you buy. By law, franchise sellers must disclose certain information about their business to potential buyers. Doing your homework about the franchise first will help you gain a solid understanding of what to expect as well as the risks that could be involved.

Know What You are Getting Into Before entering into any contract as a franchisee, you should make sure that you would have the right to use the franchise name and trademark, receive training and management assistance from the franchisor, use the franchisor's expertise in marketing, advertising, facility design, layouts, displavs and fixtures and do business in an area protected from other competitors.

Research the Training When you buy a franchise, you're paying for the right to use the franchisor's proprietary systems. However, you won't be able to use any of these systems unless you know how to use them. That's where the franchisors' formal training program comes in. Call existing franchisees of the franchise concept you're thinking of buying and ask them to share their views on the training they received. Watch Out for Possible Pitfalls The contract between the two parties usually benefits the franchisor far more than the franchisee. The franchisee is generally subject to achieving quotas and has to purchase equipment, supplies and inventory exclusively from the franchisor.

Find Out about Possible Earnings You'll probably want to know how much money you can make if you invest in a particular franchise. A franchisor isn't required to disclose information about potential income or sales. If it does, the law requires it to have a reasonable basis for the claim when it's made. Be sure to ask the franchisor for written substantiation that supports the claim. The franchisor is required to provide this if you ask.

An accountant can help you determine whether the claims are reasonable, and if they apply to how you plan to operate your business. Franchisors often don't have data about their franchisees' net profits. If you get profit information, ask if it's based on information from company-owned outlets. Company-owned outlets often have lower costs because they can buy equipment, inventory and other items in larger quantities and therefore at lower prices.

Seek Professional Help Franchises are often complex, and a specialist in franchise law should assist you to evaluate the taxation considerations. An accountant may be needed to determine the full costs of purchasing and operating the business as well as to assess the potential profit.

Section 2

Solution and Explanation

Questions 21 - 27

Write NO MORE THAN TWO WORDS from the text for each answer.

The right to use a .............- is granted in product/trade name franchising.

Answer: TRADEMARK
Supporting statement:“.........There are two primary forms of franchising. Product/trade name franchising is when the franchisor owns the right to the trademark and sells that right to a franchisee. Business format franchising is when the franchisor and franchisee have an ongoing relationship...........”
Keywords: sells, ongoing
Keyword Location: para 2, line 1
Explanation: In product/trade name franchising, the franchisor owns the right to the trademark and sells that right to a franchisee. This means that the franchisee is granted the right to use the trademark of the franchisor's business

It's important to understand the potential ...............of a franchise, so make sure that all information is taken from the franchise seller.

Answer: RISKS
Supporting statement:“..........potential buyers. Doing your homework about the franchise first will help you gain a solid understanding of what to expect as well as the risks that could be involved...........”
Keywords: risks, what
Keyword Location: para 3, line 5
Explanation: Before deciding to buy a franchise, it is important to understand the potential risks involved. This ensures that all information is obtained from the franchise seller to make an informed decision about the investment.

Make sure before buying that you have the right to do business in areas where other..................... are operating.

Answer: COMPETITORS
Supporting statement:“........franchisor's expertise in marketing, advertising, facility design, layouts, displavs and fixtures and do business in an area protected from other competitors.............”
Keywords: layouts,
Keyword Location: para 4, line 4
Explanation: Prior to purchasing a franchise, it's essential to ensure that you have the right to do business in areas where other competitors are operating. This helps prevent conflicts and ensures a protected territory for the franchisee.

Liaise with …............... to research the effectiveness of the franchisor's training.

Answer: EXISTING FRANCHISES
Supporting statement:“........program comes in. Call existing franchisees of the franchise concept you're thinking of buying and ask them to share their views on the training they received.............”
Keywords: buying , training
Keyword Location: para 5, line 4
Explanation: To evaluate the effectiveness of the franchisor's training program, it's advisable to communicate with existing franchisees. They can provide insights and feedback based on their experiences with the training provided by the franchisor.

Franchise contracts often specify that the franchisees must meet.............

Answer: QUOTAS
Supporting statement:“.........Watch Out for Possible Pitfalls The contract between the two parties usually benefits the franchisor far more than the franchisee. The franchisee is generally subject to achieving quotas and has to purchase equipmen ...........”
Keywords: subject, purchase
Keyword Location: para 6, line 1
Explanation: Franchise contracts typically specify that franchisees must meet certain quotas or performance targets. This ensures that franchisees adhere to certain standards set by the franchisor.

You should request …………… to you by a franchisor.

Answer: SUBSTANTIATION
Supporting statement:“..........Be sure to ask the franchisor for written substantiation that supports the claim. The franchisor is required to provide this if you ask...........”
Keywords: supports, required
Keyword Location: para 7, line 4
Explanation: It's important to request substantiation from the franchisor, which refers to written evidence or documentation that supports any claims made by the franchisor.

law experience…… ..... in writing for any financial information disclosed • issues should be examined by someone with professional franchise

Answer: TAXATION
Supporting statement:“..........Seek Professional Help Franchises are often complex, and a specialist in franchise law should assist you to evaluate the taxation considerations. An accountant may be needed to determine the full costs..........”
Keywords: franchise, determine
Keyword Location: para 9, line 1
Explanation: When dealing with legal and financial aspects of franchising, it's essential to seek assistance from professionals with expertise in franchise law and taxation. This ensures that issues related to taxation considerations are properly examined and addressed.

IELTS Reading Related Articles