When you buy a franchise, you, of course, pay the franchisor for the b

QUESTION

When you buy a franchise, you, of course, pay the franchisor for the business. How else does the franchisor make money off you, the franchisee?

What will be an ideal response?

ANSWER

Answer: The franchisor charges the franchisee royalties, a percentage of the franchisee’s sales.
Explanation: One of the drawbacks of being a franchisee is that you are usually required to share a percentage of your sales with the franchisor in the form of royalties.