Franchise Fees

Question 11
Multiple Choice

Franchise fees: A)Compensate the franchisee for the use of its trademark. B)Pay for all physical assets (e.g., equipment and building), needed to operate the franchise. C)Is usually a one-time flat fee paid by franchisees to franchisors. D)Is based on a percentage of the franchisee's gross sales. E)Is a government tax to register the franchise.