Some Franchise Agreements Specifically Require the Franchisee to Have a Percentage

question 4

Multiple Choice

Some franchise agreements specifically require the franchisee to have a percentage of the total franchise fee from which of the following?

• A) A venture capitalist
• B) A nonborrowed source
• C) An accredited bank
• D) The Small Business Administration (SBA)

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Definitions:

Partial Payment

A payment made that is not the full amount due but is accepted as a partial settlement of the total debt.

Cash Discount

A reduction in the price of an item or service provided by the seller to the buyer for prompt payment.

Partial Payment

A payment made that is not the full amount due on a debt, bill, or other financial obligation.

Building Materials

Various substances, components, or raw materials used in the construction and repair of buildings and structures.