One of the Most Important Questions a Prospective Franchisor Should

question 63

True/False

One of the most important questions a prospective franchisor should consider is whether the fees and royalties charged by a franchisor are consistent with the franchise's value or worth.

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Definitions:

Maturity

The date on which a financial obligation or investment becomes due for payment or is scheduled to be redeemed or expire.

Coupon Bond

A type of bond that pays the holder a fixed interest payment (coupon) at regular intervals until maturity.

Interest Basis

A method used to calculate interest payments, based on how the interest accrues over time.

Par Value

The face value of a bond or stock, representing the amount returned to the holder at maturity.