Question

Franchise fees are usually payable over a number of years, after profits are generated from the business. What is the typical payment structure for franchise fees?

A) Upfront lump sum payment
B) Monthly installments
C) Annual payments based on profits
D) One-time payment after a set period

Answer 1

The typical payment structure for franchise fees can vary, but common options include upfront lump sum payments, monthly installments, or annual payments based on profits.

Step-by-step explanation:

The typical payment structure for franchise fees can vary depending on the agreement between the franchisor and the franchisee. However, the most common payment structures are:

Ultimately, the payment structure for franchise fees depends on the specific franchise agreement and the terms negotiated between the franchisor and the franchisee.