Marty's, a clothing company, has a number of outlets which are owned and managed by private individuals. These outlets are allowed to use the brand name and products of Marty's after paying a fee to the company. They also pay a part of their revenues to the clothing line. The part of the revenues paid by the outlets to Marty's is referred to as:
A) acceptance fee
B) acknowledgement fee
C) franchise fee
D) royalty fee
E) establishment fee

Question

Quizplus · Accepted Answer

The part of the revenues paid by the outlets to Marty's is referred to as a royalty fee. This is a common practice in franchising where franchisees pay a percentage of their sales to the franchisor.

Marty's, a Clothing Company, Has a Number of Outlets Which