In the majority of cases, a franchisee pays the franchisor a royalty based on ________.
A) a predetermined fixed weekly or monthly amount
B) weekly or monthly net income
C) the size of the franchise outlet
D) weekly or monthly gross income
E) the age of the franchise outlet

Question

Quizplus · Accepted Answer

In the majority of cases, a franchisee pays the franchisor a royalty based on weekly or monthly gross income. This means that a percentage of the total sales made by the franchise outlet goes to the franchisor as a royalty fee. This ensures that the franchisor has a stake in the success of the franchise outlet and motivates them to provide ongoing support and guidance to the franchisee.

In the Majority of Cases, a Franchisee Pays the Franchisor