A ________ is the share of profits or percentage of sales a franchisee pays to a franchisor.
A) royalty
B) dividend
C) premium
D) co-pay

Question

Quizplus · Accepted Answer

A royalty is the payment made by a franchisee to a franchisor for the right to use their brand name, products, and services. It is typically a percentage of the franchisee's sales or profits, and is paid regularly as long as the franchise agreement is in place. Dividends are payments made to shareholders of a company, and are not related to franchising. Premiums refer to the price of an insurance policy, and co-pays are payments made by patients for medical services.

A ________ Is the Share of Profits or Percentage of Sales