What are royalties?

Question

fees paid to celebrities for using their names

a percentage of profits paid to the government

a percentage of a franchise’s earnings paid to the parent company

fees paid to law firms and accountants

Answer 1

Royalties are typically defined as a percentage of profits or revenues paid to an owner or creator for the use of their intellectual property, such as patents, copyrights, trademarks, or even franchises. In the context of franchises, for example, royalties are often a percentage of a franchise’s earnings paid to the parent company.

Therefore, the most appropriate answer from the options you provided is:

a percentage of a franchise’s earnings paid to the parent company.