Which of the Following Statement Is Not Correct Regarding the Costs

question 12

Multiple Choice

Which of the following statement is not correct regarding the costs associated with purchasing a franchise?

• A) The franchisee typically pays a royalty based on a percentage of weekly or monthly net income.
• B) Capital costs vary by franchisor, but may include the cost of buying land and building a building.
• C) Additional fees may be charged for activities such as training staff, providing management expertise when needed, and providing computer assistance.
• D) Franchisees are often required to pay into a national or regional advertising fund.
• E) The initial franchise fee varies, depending on the franchisor.

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Definitions:

High-Exchange Relationship

A type of relationship characterized by high levels of trust, mutual respect, and reciprocal benefits, often found in organizational contexts.

Coercion

The practice of persuading someone to do something by using force or threats.

Rational Persuasion

The process of using logical arguments and factual evidence to convince someone of a point.

Implicit Leadership Theories

Personal beliefs or assumptions individuals hold about the traits and behaviors that make for an effective leader.