CHAPTER 5 FRANCHISING TRUE/FALSE 5.1 The first important use of product franchising involved the Singer Corporation. Answer: T 5.2 Because of the mark-up charges by the franchiser, the cost of materials and supplies are always higher than what the franchisee would pay on the open market. Answer: F 5.3 Due to the interest the franchiser has in the success of its franchised units, it frequently puts considerable emphasis on helping the units make operational improvements. Answer: T 5.4 One of the problems that franchisees often must deal with is an unrealistic set of expectations regarding the likelihood of success of their unit. Answer: T 5.5 The evaluation of whether to buy a franchise need not involve self-examination of interests because the franchiser will notice any problems of this nature and warn you about them. Answer: F 5.6 Library research is likely to be an important part of any investigation into whether to buy a franchise. Answer: T 5.7 An important source of franchises available for purchase is t...