The ongoing fees that a franchisee pays to a franchiser is generally known as franchise royalty. There are different types of royalties. While the most common one is percentage on sales, the other type is a flat fee paid periodically. Franchise Royalty is paid for the continuous support and the right to use the franchisers brand and do the business as per the guidelines laid. The entire franchise system, works on the basic fundamental of getting recurring revenue from the franchisees, which is then used to build the business and brand.
Franchise Royalty is different from franchise fees. Most times, Franchise fee is just the initial amount that the franchisee pays to take up the franchise and then pays a renewal fees for renewal of the franchise agreement. However, franchise royalty, in addition is the component of fee that is paid in co-relation to the business done. Hence in some way, the profitability of the business is shared with the franchisor through franchise royalty.
Your cart is Empty
Begin With the Right Search.Take the first steps to business ownership by looking up our detailed Franchise and Business Directory to search for franchises for sale and new business opportunities that will enable you to reach your business ownership goals in 2012.
Over a 1000 Franchises for Sale, Dealerships, Distributorships, Agencies and Business Opportunities in over 50 industries are available and updated daily. Explore businesses suitable for Everyone including Women,Senior Citizens,International Businesses & Master Franchisees.You can also have a one-one discussion with our Business Consultants and choose a business which matches your lifestyle goals and budget, including franchises and businesses that enable you to work from home, on a part-time basis, or require a low investment.
Whether you're just beginning your search for a small business to own, or you're already a franchisee, FranchiseBazar.com makes it easy to stay connected to the world of franchising & new business opportunities by offering you the latest franchise business news and small business information. Simply become a priveleged business seeker by signing in, bookmark our news and articles pages and subscribe to our e-newsletter to get connected now.You can also leave your Biography and let companies who are in your preference segments contact you. Also existing franchisees & business owners give you their reviews on their experiences, helping you make a more informed decision.