The cost of a franchise may include
A) royalty payments.
B) high executive salaries.
C) a one-time federal franchise tax.
D) higher-than-usual labor costs.

Question

Quizplus · Accepted Answer

Royalty payments are a common cost associated with owning a franchise. These payments are typically a percentage of the franchisee's sales and are paid to the franchisor in exchange for the use of their brand name, products, and services. High executive salaries, a one-time federal franchise tax, and higher-than-usual labor costs are not necessarily costs associated with owning a franchise.

The Cost of a Franchise May Include