ENTREPRENEURIAL OPERATIONS
QUALITY CONTROL
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
Which of the following best describes the term royalty in franchising?
|
|
The % of revenue given to the franchisor by the franchisee
|
|
|
The % of profit given to the franchisor by the franchisee
|
|
|
The % of revenue given to the franchisee by the franchisor
|
|
|
The % of profit given to the franchisee by the franchisor
|
Explanation:
Detailed explanation-1: -The franchisor owns the trademark(s) and the operating system for the franchise. The franchisee is licensed to use both the trademark and the operating system according to the terms and conditions set forth in the franchise agreement. Both the franchisor and franchisee must fulfill their obligations under the contract.
Detailed explanation-2: -Franchise royalties are usually collected by your franchisor on a monthly basis. Like marketing fees, these fees are based on a percentage of your revenue. But there’s one major difference; the percentages are higher. Franchise royalties range from 4% of your revenue all the way up to 12% or more.
There is 1 question to complete.