The Average Franchise Fees Range from ________ Percent of Room

question 11

Multiple Choice

The average franchise fees range from ________ percent of room revenue.

• A)6 - 8
• B)3 - 4
• C)14 - 16
• D)10 - 12

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Definitions:

Carryforward

A tax provision allowing current losses or credits to be used in future tax years to offset potential gains or income.

Net Income

The amount of earnings left after all expenses, taxes, and costs have been subtracted from total revenue.

FMV

Fair Market Value, an estimate of the market value of a property or asset, based on what a knowledgeable, willing, and unpressured buyer would likely pay to a knowledgeable, willing, and unpressured seller in the market.

Tax Depreciation

The deduction of a portion of the cost of a business asset from taxable income over the asset's useful life, as allowed by tax laws.