Ongoing royalties are regular payments that franchisees make to franchisors, typically calculated as a percentage of the franchisee’s sales or revenue. These fees are an essential part of the franchise system and provide franchisors with the revenue needed to maintain brand standards, offer support, and invest in national marketing efforts. The royalty rate can vary by franchise system, usually falling between 4-8% of gross sales, and is typically outlined in the franchise agreement.
Ongoing Royalties
This term
Ongoing royalties are payments made by the franchisee to the franchisor based on a percentage of sales.
Joe Bailey
Lead Franchise Advisor & Owner
At Franchise Reports, the goal is simple: help you find better franchises.
