Which of the following is true for franchisors?

Question

Quizplus · Accepted Answer

The franchisor collects royalty payments from the franchisee, which is usually a percentage of the franchisee's sales. A franchise agreement typically includes provisions for payment of a franchise fee, which is paid by the franchisee to the franchisor, but this is not an ongoing payment. The franchisor does not pay the franchisee and does not change its operations to suit those of the franchisee's. The franchisor owns and licenses the trade mark to the franchisee, but does not license it from the franchisee. The franchisor may provide some support and assistance to the franchisee during the start-up phase, but it is typically the franchisee who pays the start-up costs.

Which of the Following Is True for Franchisors