A Prospective Franchise Owner Wants to Keep His Monthly Costs

Multiple Choice

A prospective franchise owner wants to keep his monthly costs at a minimum. The franchisor he is reviewing is advertising that royalty payments of 8% of sales could be as high as $250,000 per month. The franchisor is claiming that a franchisee can expect monthly sales to be as high as:

A) $2,125,000
B) $2,000,000
C) $3,125,000
D) $200,000