Question

Compensation for the use of the brands trade name, brand marks and associated logos, goodwill, and other franchise services best describes:

	A.	Brand standards
	B.	Royalty fees
	C.	Reservation fees
	D.	Advertising or marketing fees

Answer 1

Royalty Fees are payments made by one company (the licensee) to another company (the licensor) in exchange for the right to use intellectual property such as goodwill, brand name, logo or physical assets owned by the licensor.It is a periodic charge that the owner of a franchised business needs to pay to remain part of the franchise system that provides branding, advertising and administrative support. The royalty fee for a franchise is typically some percent of either the overall or net sales of the business and the payment is required each week, month or quarter.

For example, In the fashion industry, designers such as Ralph Lauren and Calvin Klein license the right to use their names on items of clothing in exchange for royalties.They may sign a contract with a company that makes jeans that allows the company to place the designer's name on the jeans.In the music industry, royalties are paid to music copyright holders and to songwriters by radio stations and anyone else who derives a commercial benefit from the copyrighted material.

Royalty Fees is a compensation for the use of the brands trade name, brand marks and associated logos, goodwill, and other franchise services.

B.Royalty Fees