(Answered) Why might you expect to see flat royalty payments in

Economics

Why might you expect to see flat royalty payments in home-based franchises but revenue-based royalties in franchises 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 that franchised tutoring services often charge a fixed royalty per student enrolled?

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