What types of fees or payments are you expected to pay as a franchisee of a A percentage of your profits as a subsidy for future franchisees start-up A percentage of corporate employee costs to support the franchise. An annual fixed fee to the franchisor to be allowed to remain in The royalty fees for the support from the franchiser. square Item 15 Item 16 Item 17 Item 18 Item 19 Item 20

Question

What types of fees or payments are you expected to pay as a franchisee of a A percentage of your profits as a subsidy for future franchisees start-up A percentage of corporate employee costs to support the franchise. An annual fixed fee to the franchisor to be allowed to remain in The royalty fees for the support from the franchiser. square Item 15 Item 16 Item 17 Item 18 Item 19 Item 20

Answer 1

a franchisee, you would typically be expected to pay the following fees and/or payments:* **Royalty fees:** These are ongoing fees paid to the franchisor, usually calculated as a percentage of gross sales. They cover the right to use the franchisor's brand, trademarks, operating systems, and ongoing support. This corresponds to **The royalty fees for the support from the franchiser.*** **Initial franchise fee:** This is a one-time fee paid upfront to purchase the franchise. It covers the right to use the franchisor's system and initial training and support. This isn't listed in the options.* **Advertising/Marketing fees:** Franchisees often contribute to a national or regional advertising fund, also usually a percentage of sales. This helps maintain brand awareness and generate leads. This isn't explicitly listed in the options, though it could be considered part of the support provided by the franchisor and thus included in the royalty fees.* **Other fees:** Depending on the franchise agreement, there might be other fees for specific services, like training for new employees, technology upgrades, or use of proprietary software.The other options provided are generally *not* typical franchisee fees:* **A percentage of your profits as a subsidy for future franchisees start-up:** This is unusual. Franchisors typically use the initial franchise fees from new franchisees to fund their expansion and support.* **A percentage of corporate employee costs to support the franchise:** While corporate employees do support the franchise network, their costs are generally covered by the franchisor's overall revenue stream (including royalty fees), not by direct payments from individual franchisees.* **An annual fixed fee to the franchisor to be allowed to remain in:** Royalty fees are the standard mechanism for ongoing payment. A fixed annual fee *in addition to* royalties would be unusual. Renewal fees might apply at the end of the franchise agreement term.Therefore, the correct answer from the provided options is **The royalty fees for the support from the franchiser.**

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