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Chelsea Waris
on Nov 09, 2024

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The ongoing payments that franchisees pay to franchisors--which is usually a percentage of gross sales--is known as a/an ______.

A) franchise agreement
B) franchise fee
C) royalty fee
D) initial investment fee

Ongoing Payments

Recurring payments that are made on a regular basis for a service or product.

Royalty Fee

A payment made by one party (the licensee) to another (the licensor) for the ongoing use of an asset, typically intellectual property.

Gross Sales

The total sales revenue of a business before any deductions are made for returns, allowances, or discounts.

  • Comprehend the financial liabilities and obligations, such as fees and royalties, associated with being a franchisee.
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Ifabian NoriegaNov 10, 2024
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