Which of the Following Statements Is Incorrect Regarding the Franchisor-Franchisee

question 58

Multiple Choice

Which of the following statements is incorrect regarding the franchisor-franchisee relationship?

• A) A franchisee may be charged a fee for additional training.
• B) Some franchisors require a new franchisee to pay a "grand opening" fee.
• C) Franchisees are often required to pay into a national or regional advertising fund.
• D) Weekly or monthly royalty fees are usually around 2% of net income.
• E) Franchisees may have to pay a monthly royalty even if the business is losing money.

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Definitions:

Product Service

A combination of tangible products and intangible services provided to fulfill the needs or desires of customers.

Arouse Interest

To stimulate curiosity or concern about a subject or issue.

Sales Promotion

Marketing activities designed to temporarily boost sales by offering customers incentives or discounts.

Short-Term Inducement

Short-term inducement refers to marketing strategies designed to boost immediate sales of a product or service, often through discounts, promotions, or special offers.