Franchise Royalty Payments: Betting on Your Business in the Long Run
Royalty payments are an obligation by which franchisees pay the franchisor a set percentage or flat rate fee each week or month. The franchisor collects payments from all franchisees and strengthens the overall business model.
First, a definition. Royalty Payments are “scheduled payments or contributions made to the entire organization, used to maintain the system and ensure that all avenues flow smoothly between the franchisor and franchisee.”
In essence, when you make your scheduled regular royalty payment to your franchisor, you are—in fact—guaranteeing a brighter future for the brand as a whole, and your business individually. And isn’t that one of the main reasons you would choose a franchise opportunity in the first place?
I can share some insight on royalty and other franchise related topics. Contact me today to learn more.