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:

royalty fee

Explanation:

According to my research on different business obligations, I can say that based on the information provided within the question the obligation being mentioned is referred to as a royalty fee. Like mentioned in the question this is a recurring fee that the franchisee has to pay every month to the franchiser and is usually a certain percentage of the monthly revenue which is agreed upon when first signing the contract.

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