A Source of Revenue That Could Be Built into the Franchise

question 107

Multiple Choice

A source of revenue that could be built into the franchise agreement might include all but which of the following?

• A) Franchise fee
• B) Percentage of gross operating revenues
• C) Revenue from selling necessary products and supplies to the franchisee
• D) Interest income

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Definitions:

Straight-line Method

A depreciation calculation technique that evenly spreads the loss in value of an asset across each year of its expected useful lifespan.

Double-declining-balance Method

A depreciation approach that speeds up the process by using a rate twice that of the typical straight-line method.

Sales Price

The amount of money charged for a product or service, or the sum a customer pays to purchase something.

Salvage Value

The presumed value for resale of an asset at life’s operational end.