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Franchise Fees

Question 7

Multiple Choice

Franchise fees:


A) Compensate the franchisee for the use of its trademark.
B) Pay for all physical assets e.g., equipment and building) , needed to operate the franchise.
C) Is usually a one-time flat fee paid by franchisees to franchisors.
D) Is based on a percentage of the franchisee's gross sales.
E) Is a government tax to register the franchise.

Correct Answer:

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