How Are Franchise Royalties Calculated?
When purchasing a franchise, be aware that royalties represent a continuing commitment that, typically, will involve the payment of royalty fees on a weekly or monthly basis. Royalties are typically calculated as a percentage of gross sales and constitute an expense that will impact your monthly and annual profitability as a franchisee.
Infographic: The Economics of Franchising
Learn More about Buying a Franchise by asking us for a free copy of Charles N. Internicola’s book, “An Entrepreneurs Guide to Purchasing a Business or Franchise”.