Jenna plans to invest in a cleaning service franchise called "Spare Time".At her first interview with the franchisor's selling agent,she learned that the parent company expects royalties of 5%.These are:
A)The initial investment,also known as the franchise fee paid to the franchisor.
B)The cost of supplies that she will purchase one time each month from the parent company.
C)Milestones that the parent company expects her to reach.With each milestone,she will be rewarded with commissions.
D)A share of the profits or a percentage share of revenues net sales).

Question

Quizplus · Accepted Answer

Royalties are a percentage share of revenues or profits that the franchisee pays to the franchisor. Therefore, option D is the correct choice. The other options do not relate to royalties.

Jenna Plans to Invest in a Cleaning Service Franchise Called