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Which of the Following Statement Is Not Correct Regarding the Costs

Question 12

Multiple Choice

Which of the following statement is not correct regarding the costs associated with purchasing a franchise?


A) The franchisee typically pays a royalty based on a percentage of weekly or monthly net income.
B) Capital costs vary by franchisor, but may include the cost of buying land and building a building.
C) Additional fees may be charged for activities such as training staff, providing management expertise when needed, and providing computer assistance.
D) Franchisees are often required to pay into a national or regional advertising fund.
E) The initial franchise fee varies, depending on the franchisor.

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