Which of the following holds true for the royalty fee paid by a franchisee?

Question

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The royalty fee paid by a franchisee is a fee for the continued use of a franchisor's trade name, as well as any ongoing support and assistance provided by the franchisor. It is typically a percentage of the franchisee's gross revenue and is paid on an ongoing basis. It is not a lump-sum payment, a fee for promotional campaigns or administrative costs, or a payment for leased land or equipment.

Which of the Following Holds True for the Royalty Fee