Which of the following is NOT an example of the costs involved with starting up a franchise?
A) equipment and rental fees
B) insurance and license fees
C) franchise fee
D) employee training
E) royalties
Answer: E
Explanation: E) Startup costs include franchise fees, and costs for legal services, insurance, licenses, inventory, equipment, rent, signage, construction, landscaping, and employee training and salaries. You pay royalties—a percentage of your sales—only after you have started generating income.
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