Question

In his search for a franchised business that would satisfy his passion for the outdoors and earn him a decent living, Andrew noted that the shared profit criterion required of franchisors had significant variance. Some required franchisees to pay 7% of their monthly revenues to the franchisor. Others required 4% of the profits. In business we refer to this obligation as a:

Answer 1

Answer:

royalties

Explanation:

According to my research on franchised businesses, I can say that based on the information provided within the question in business this obligation is referred to as royalties. These is an obligation in which the franchisee agrees to pay the franchiser a set percentage of the profits made under the licensed company. Like seen in the question the royalty percentages depend on the company as well as what is agreed upon when signing the licensing agreement.

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