Anthony recently signed a franchise contract with Tasty-Freeze,an ice cream chain.As Anthony readies the store,he frequently contacts Tasty-Freeze representatives with questions about recipes,tools,and advertising.Which of the following most likely motivates the Tasty-Freeze franchise to assist Anthony as he develops his business?
A) sunk costs
B) lump sums
C) annual profits
D) upfront costs
E) sales royalties

Question

Quizplus · Accepted Answer

Sales royalties are typically a percentage of the franchisee's sales that are paid to the franchisor. By assisting Anthony in developing his business successfully, Tasty-Freeze increases the likelihood of higher sales at Anthony's franchise, which in turn would lead to higher royalty payments to Tasty-Freeze.

Anthony Recently Signed a Franchise Contract with Tasty-Freeze,an Ice Cream