The Internicola Law Firm, P.C.

What Are The Royalty Payments Associated With A Franchise In New York?

If you plan on starting a franchise in New York, as part of your agreement you will have to make monthly royalty payments. These are payments that a franchisor requires you to make for use of their business property.

Generally, royalty payments will be between 5% and 8% of your total monthly gross sales, but these numbers will vary depending on the type of business franchise that you choose. The royalty payments that you will be required to make should be explained in your franchise agreement.

What do royalty payments entitle me to?

Again, the terms of your royalty payments will be explained in your franchise agreement. But generally, as part of your agreement, you will be entitled to: 

• The franchisor's intellectual property, such as their brand name, logo, sounds and designs;
• The franchisor's unique products and services;
• The franchisor's ongoing support for your business needs;
• The benefits of the franchisor's marketing and advertising campaigns; and
• Assurance that the franchisor will maintain an organized business structure. 

If you need help understanding your franchise agreement, or your monthly royalty payments, you can get the professional help of a New York franchise attorney.

If you are interested in starting a franchise in New York, you may want to know about the royalty payments you will need to make to the franchisor. To learn more about franchise royalties, visit our article library. 

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