Handee Hardware, Inc., grants a franchise to Ivan to open and operate a Handee Hardware store. Handee will likely charge Ivan

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When a franchise agreement is established, the franchisor typically charges a license fee to the franchisee to use the franchisor's brand name, trademark, and operating system. Additionally, the franchisor may charge a price for supplies such as inventory, marketing materials, or equipment necessary to operate the franchise. Therefore, Handee Hardware, Inc. is likely to charge Ivan both a license fee and a price for supplies.