Franchise Ownership Quiz

If you are buying an existing business, you should ask the current owner for important information in written form.

Fewer than 100,000 people in the United States own franchises, and the popularity of franchise ownership is declining rapidly.

Initial franchise fees are usually refundable if the franchise owner later decides to go into another line of business.

State and federal laws require that the franchisor provide the Franchise Disclosure Document (FDD) to prospective franchisees 14 days before the franchisee signs a contract.

Comparing franchises is a good idea because some franchisors help buyers with marketing, merchandising, and site selection.

According to some estimates, as many as 90 percent of all businesses, including the vast majority of small- and medium-sized companies, are owned by families.

Starting your own new business offers a low level of risk because you depend on your own business talents.

Income earned by a sole proprietorship is taxed twice: once as company income and again as individual income.

Antitrust laws make monopolies in certain industries illegal; they also ban other types of business activities that do not promote competition.

The Federal Bureau of Investigation is the government agency that monitors activities such as false or misleading advertising and price setting by competitors.