Franchise Royalties

Franchise royalties are ongoing payments that a franchisee makes to the franchisor in exchange for the right to operate a business under the franchisor's brand and systems. Typically calculated as a percentage of the franchise's gross or net revenue, these fees help cover the support, licensing, and marketing services provided by the franchisor. Think of it as a regular fee to keep benefiting from the established brand, training, and operational expertise, ensuring the franchise maintains quality standards and brand consistency across locations.