Which of the Following Is Not One of the Fees

question 63

Multiple Choice

Which of the following is not one of the fees typically found in a franchise agreement?

• A) initial license fee
• B) royalty fee
• C) assessment fee
• D) lease fee
• E) annual continuation fee

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Definitions:

Initial Cost

Initial cost refers to the amount of money spent to acquire, or the cost associated with starting, an investment, project, or venture, including all necessary expenses to prepare the asset for its intended use.

Payback

The period of time required to recoup the funds expended in an investment, or how long it takes for an investment to reach a breakeven point.

Annual Cash Flows

The total cash that is generated and used by a business in one fiscal year.

Required Rate

This is often referred to as the minimum acceptable return on an investment, set by investors or managers.