A franchise agreement term, this is a monthly fee usually charged on the revenue stream to use the franchise name or trademark. The most common amount is between 5 and 7% of the sales. Most franchisors require the royalties’ payment each month.
The primary reason for the franchise arrangement is the increased net profit for the franchisee in using the franchiser’s name, logo, brand, or trademark. The franchiser charges an upfront fee called a Franchise Fee, monthly […]