Each month Tomas must report his gross sales and pay a percentage of that amount to his franchisor.This percentage is:

Question

Quizplus · Accepted Answer

The percentage that Tomas must pay to his franchisor each month is referred to as a royalty fee, which is a standard cost in franchising agreements. It is non-negotiable and not a finance charge. It is not an investment cost as it does not provide Tomas with any ownership or equity in the franchisor's business.

Each Month Tomas Must Report His Gross Sales and Pay