The Truth About Fixed Versus Percentage Royalty Fees
shared by editorialbusine... on Oct 02
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Starting a franchise business is not just about paying a fee in exchange of achieving instant success. There is plenty to understand, including the fees you are paying for in the first place, like the...
initial franchise fee. This will cover a variety of things you will need to start your trade from initial training, trademark, business system, to the products you will sell.
However, it is not the only fee that you will pay to a franchise. In addition to the franchise fee upfront, you will also have to pay the royalty fee. These royalties are ongoing payments designed to compensate the franchisor for the use of the name, property and the rest of the copyrighted works for as long as you are a franchisee.
While it seems to be all confusing, it’s important to know the two most common types of royalty fees: the fixed and percentage royalty fees. To help you gain further understanding, here’s an infographic from Business Franchise Australia, a bi-monthly publication offering the latest news, expert advice, and franchise information from across Australia and New Zealand, that explains in detail these two types of payments and their differences.
Source
http://www.b...yalty-feesCategory
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