franchise royalty fees

Franchise royalty fees are regular payments that a franchisee makes to the franchisor in exchange for the ongoing use of the brand’s name, systems, and support. These fees are typically a percentage of the franchise’s gross sales or revenue, and they help cover costs like marketing, training, and brand management. Essentially, royalties compensate the franchisor for enabling the franchisee to operate under a proven business model, while providing ongoing assistance and maintaining brand consistency across locations.