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:

Ten Commandments

A set of biblical principles relating to ethics and worship, playing a fundamental role in Christianity and Judaism.

Listening

The active process of receiving, interpreting, and responding to verbal and nonverbal messages.

Nonverbal Communication

Transmission of information or messages without the use of words; includes gestures, body language, facial expressions, and other visual cues.

Vocabulary

The range of words known and used by a person in particular contexts or languages.