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Why might you expect to see flat royalty payments in home-based franchises but revenue-based royalties in franchisees that operate from commercial buildings? (Hint: Among the most popular home-based franchises are cleaning services offered to businesses, and delivery services for seniors who live at home.)

a. Is your explanation consistent with the fact franchised tutoring services often charge a fixed royalty per student enrolled?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M951919

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