In a typical franchise arrangement,a franchisee pays an initial fee and a monthly percentage of gross sales in exchange for the exclusive rights to sell goods and services in a specified geographic area.

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This statement accurately describes a typical franchise arrangement. A franchisee pays an initial fee and ongoing royalties to the franchisor in exchange for the right to use the franchisor's trademark and operating system, as well as ongoing support and assistance. The franchisee typically operates in a specific geographic area that is designated by the franchisor.

In a Typical Franchise Arrangement,a Franchisee Pays an Initial Fee