Marty's, a clothing company, has a number of outlets that are owned and managed by private individuals. These outlets are allowed to use the brand name and products of Marty's after paying a fee to the company. They also pay a part of their revenues to Marty's. The upfront payment these outlets make to Marty's for using the Marty's brand name is referred to as a(n):
A) acceptance fee
B) acknowledgement fee
C) franchise fee
D) royalty fee
E) establishment fee

Question

Quizplus · Accepted Answer

The upfront payment made by outlets to use a brand name and operate under a company's business model is called a franchise fee.

Marty's, a Clothing Company, Has a Number of Outlets That