Ivy Is Investing in a Home Cleaning Franchise Called HomeKeepers

Multiple Choice

Ivy is investing in a home cleaning franchise called HomeKeepers. At her first interview with the franchisor's selling agent, she was told the parent company expects 5% royalties. What are royalties?

A) The initial investment, also known as the franchise fee paid to the franchisor
B) The cost of supplies that she will purchase one time each month from the parent company
C) The milestones that the parent company expects her to reach. With each milestone, she will be rewarded with commissions
D) The share of the profits or a percentage share of revenues (net sales)