The continuous fee paid by the franchisee to the franchiser based on a percentage of the franchisee's gross revenue is known as:
A) royalty fee.
B) start-up fee.
C) license fee.
D) franchise fee.

Question

Quizplus · Accepted Answer

The continuous fee paid by the franchisee to the franchiser based on a percentage of the franchisee's gross revenue is called a royalty fee. A franchise fee is an upfront payment made by the franchisee to the franchiser for the right to use their brand name and business model, while a license fee is a payment made for the right to use a specific product or technology. A start-up fee may be charged by some franchisers, but it is not a continuous fee based on revenue.

The Continuous Fee Paid by the Franchisee to the Franchiser