Which of the following is true about a franchise fee?
A) It is a fee paid to the franchiser at regular intervals of time.
B) It is based on a percentage of the franchisee's gross revenue.
C) It is a one-time fee paid to the franchiser.
D) It is a continuous fees paid by the franchiser to the franchisee.

Question

Quizplus · Accepted Answer

A franchise fee is typically a one-time fee paid to the franchiser by the franchisee in order to obtain the right to use the franchiser's brand, business model, and support services. It is not paid at regular intervals of time or based on a percentage of gross revenue. Additionally, the franchiser does not pay fees to the franchisee.

Which of the Following Is True About a Franchise Fee