Practice Areas
Blog 
Franchisor Services
- Improvement of Franchise System Proves Effective for Houston Pizza Franchise
- Franchising versus Licensing
- Recovery of Legal Fees in Franchise Litigation
- Franchisors: Financing Options to Increase Franchise Sales
- "The Accidental Franchisor?": When is Franchising Right?
Legal News
- Taco Bell Meat Integrity Questioned in Class Action Lawsuit...
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
Library
Franchisor Services
Franchise Royalties (Part B)
How much will I have to pay in royalties?
The royalty payments you make will depend on the franchise that you choose. McDonald's may take different payments than a UPS store franchise, for instance. While there are several formats for royalty payments, they are typically paid on a monthly basis. The most common payment is between 5% and 8% of a franchise's total gross monthly sales.
Some franchisors may take a higher percentage based on net sales (after expenses). All of this should be clarified when you read the franchise agreement and can be discussed with your New York franchise attorney to ensure that it is a fair payment structure.
The Importance of a Franchise Agreement
The franchise agreement is the legal document which will bind you to the franchisor. The franchise agreement will outline such things as:
- The franchisor's terms and conditions;
- Your obligations to the franchisor (such as minimum purchases, and royalty payments); and
- The rules for your use of the company's intellectual property.
The franchise agreement will also legally bind you to these terms. If you are considering starting a franchise in New York, you should have your New York franchise attorney review the franchise agreement before signing.
Help From a New York Franchise Attorney
Starting a franchise in New York can be a long and intimidating process. But if you plan to do it, you should take your time, and make sure to carefully consider every step. You can protect yourself with the professional help of a New York franchise attorney. An attorney can:
- Review the terms of your franchisor agreement;
- Explain your obligations;
- Ensure that you meet the necessary requirements; and
- Represent your interests in a business dispute.
If you are an entrepreneur who is interested in purchasing a business or franchise, there is a lot you need to know, including the top 5 business-buying myths and how to evaluate business assets. For a limited time, get this FREE business manual An Entrepreneurs Guide to Purchasing a Business or Franchise. Offering expert help in New York, New Jersey and nationwide, New York franchise attorney Charles N. Internicola is ready to answer your questions about franchise, national and international trademarks, and any critical business matters that may arise. Contact us today - 1-800-976-4904
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.
Click here to view our privacy policy
Search
Books
More Information
To obtain information about our business and franchise law services complete the form below:
Charles N. Internicola, Esq.
New York, New Jersey
and Nationwide Legal Representation
1610 Richmond Road
Staten Island, NY 10304
Phone: 718. 979. 8688
Toll Free: 800. 976. 4904
Get Directions
Note:
Your information is confidential and is not used or sold for marketing purposes. We accept no duty and no representation without a written contract setting forth terms of representation.