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Posted on 2/2/2011 - Franchising Documentary Damages Cold Stone Creamery Franchises...
Posted on 1/17/2011 - Noble Roman’s Inc. Wins One Lawsuit, Starts Another...
Posted on 1/13/2011 - Successful Franchises Listen to Customer Demand...
Posted on 1/12/2011 - Kid’s Clothing Store Sues for Trade Secret Theft...
Posted on 12/9/2010
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Franchisor Services
What Is A Franchise Royalty?
A: When starting a franchise in New York, one of the obligations that you'll have to meet is to pay a franchise royalty. A franchise royalty is a monthly payment you will have to make to the business franchisor. These payments are basically financial contributions to the main corporation, which will be used to maintain the business relationships between the franchisor and their franchisees.
A franchise royalty will help the franchisor to do the following:
• Stay up to date with technological advancements, so that your business remains competitive;
• Introduce new products and services to the market, which will enhance your daily operations;
• Ensure all avenues run smoothly between themselves and your franchise(s);
• Pay their own monthly expenses and
• Turn a profit.
Once you own a franchise in New York, your franchise royalty fee may be 5-8% of your gross monthly sales. However, while this is a typical franchise royalty fee, some companies may calculate the fee based on a higher percentage. At the most, you may be required to pay 6-8% based of your monthly net sales (after expenses). If you have questions regarding the franchise royalty for your franchise in New York, you can get the professional advice of a New York franchise attorney.
If you are an entrepreneur who is interested in franchising your business there is a lot you need to know. For a limited time, get Charles N. Internicola, Esq's franchise law report to determine whether or not your business is right for franchising. Contact us today at 1-800-976-4904 for more information about Mr. Internicola's franchise law services in New York and how he assists entrepreneurs franchise their business nationwide.
IMPORTANT DISCLAIMER: The information contained on this website is provided for general educational purposes only, should not be relied on as legal advice and does not serve to create an attorney client relationship. In utilizing this website you acknowledge that there is no attorney client relationship between you and Charles N. Internicola, Esq. and that the information contained on this site does not and cannot serve as a replacement for the competent legal advice of a licensed attorney in your state. Further you acknowledge that any and all citations to cases and statutes must be independently verified by competent legal counsel to confirm the validity and accuracy of such information. The content of this site is subject to the Copyright of its author and owner, Charles N. Internicola, Esq.
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