The cost of a franchise may include:

Question

Quizplus · Accepted Answer

Royalty payments are a common cost associated with franchising. Franchisees are typically required to pay a percentage of their sales as a royalty fee to the franchisor in exchange for ongoing support and use of the brand name and business model. The other options listed (higher operational costs, a one-time federal franchise tax, and higher labor costs) may or may not apply to a particular franchise, and are not necessarily inherent costs of franchising.

The Cost of a Franchise May Include