Question

Liam owns a far horizons travel agency franchise. as a franchisee, liam is guaranteed the right to retain all of his franchise's revenues and profits.
a. True
b. False

Answer 1

The statement that as a franchisee, Liam is guaranteed the right to retain all of his franchise's revenues and profits is false. 
Franchisees usually pay a royalty to the franchisor - the party that gets the right to market a product or service using the trademark or trade name of another business (franchisee). The royalty can be a share of the franchisee's revenues or a share of the franchisee's profits.