If You Are a Franchisor and You Charge a Royalty

question 28

Multiple Choice

If you are a franchisor and you charge a royalty of 5% on revenue and you have franchisees that have revenues of $1 million, $2 million, $1.5 million, and $2.5 million, how much would you earn in royalties?

• A) $3,500,000
• B) $3,000,000
• C) $300,000
• D) $350,000