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

Question

Quizplus · Accepted Answer

The fact that Tomas must report his gross income and pay a percentage every month to his franchisor suggests that this is a royalty fee required by the franchisor for the use of their brand, trademarks, products, and services. Royalty fees are not negotiable every month, but they can be negotiable on an annual or longer-term basis depending on the agreement between the franchisor and the franchisee. Finance charges and investment costs are not relevant in this scenario.

Each Month, Tomas Must Report His Gross Income and Pay