Ask Question
1 October, 01:53

Ivy is investing in a home cleaning franchise called HomeKeepers. At her first interview with the franchisor's selling agent, she was told the parent company expects 5% royalties. What are royalties?

+3
Answers (1)
  1. 1 October, 04:25
    0
    A royalty is a fee that the franchisee has to pay the franchiser for trading under its name.

    Explanation:

    A franchise operation is when one party (franchiser) allows another party (franchisee) access to it's proprietary knowledge, trademark and processes in order to allow the party to sell a product or provide a service under the business's name. A common example of a franchise operation are KFC outlets across the globe.

    A royalty fee is a fee that the franchisee has to pay the franchiser on a common basis such as quarterly or annually for trading under its name. It is generally calculated as a percentage of gross sales. In this case the royalty fee would be 5% of gross sales.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Ivy is investing in a home cleaning franchise called HomeKeepers. At her first interview with the franchisor's selling agent, she was told ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers