To whom are a lump sum and royalties paid when a franchise opens?

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Multiple Choice

To whom are a lump sum and royalties paid when a franchise opens?

Explanation:
In a franchise arrangement, the entity that collects the upfront franchise fee and ongoing royalties is the franchisor. The lump-sum franchise fee is paid by the franchisee to obtain the rights to use the brand, operating system, and support provided by the franchisor. Royalties are ongoing payments, usually a percentage of sales, also paid to the franchisor in exchange for continuing access to the brand and system. So, the lump sum and royalties go to the franchisor. The franchisee pays these fees, while suppliers are paid for inventory by the franchisee and customers pay the franchisee for products.

In a franchise arrangement, the entity that collects the upfront franchise fee and ongoing royalties is the franchisor. The lump-sum franchise fee is paid by the franchisee to obtain the rights to use the brand, operating system, and support provided by the franchisor. Royalties are ongoing payments, usually a percentage of sales, also paid to the franchisor in exchange for continuing access to the brand and system.

So, the lump sum and royalties go to the franchisor. The franchisee pays these fees, while suppliers are paid for inventory by the franchisee and customers pay the franchisee for products.

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