Which of the Following Is True About a Franchise Fee

question 54

Multiple Choice

Which of the following is true about a franchise fee?

• A) It is a fee paid to the franchiser at regular intervals of time.
• B) It is based on a percentage of the franchisee's gross revenue.
• C) It is a one-time fee paid to the franchiser.
• D) It is a continuous fees paid by the franchiser to the franchisee.

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Definitions:

Interest Rate

The percentage of a sum of money charged for its use, reflecting the cost of borrowing money or the return on invested funds.

Bond

A fixed income investment in which an investor loans money to an entity (typically corporate or governmental) which borrows the funds for a defined period at a variable or fixed interest rate.

Payment

The transfer of money or goods in exchange for the provision of services, the fulfillment of an obligation, or the purchase of goods.

Interest Rate

The fee, represented as a percentage, charged for the privilege of borrowing money, typically assessed annually on the loan principal.