royalty
(noun)
Regular payment made from the franchisee to the franchisor for the right to be a franchisee.
Examples of royalty in the following topics:
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Disadvantages of Franchises
- Thus, the company's focus was on profits through fees and sales to franchisees rather than royalty payments.
- - Franchisees have to pay a significant percentage of their revenues to the franchisor: On top of the upfront money needed to start a franchise, the franchisee must pay fees and royalties to the franchisor.
- Royalties are paid periodically during the life of the franchise agreement.
- - Other franchise costs: In addition to royalties and payments, the franchisee may be required to buy certain items from the franchisor like computer systems and software.
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Revenues
- Some companies receive revenue from interest, dividends or royalties paid to them by other companies.
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Types of Franchises
- In return, the business owners pay fees and royalties.
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Franchise Agreements
- Franchisee Payments, such as: Initial License Fee, Training Fees, Marketing Fund, Royalties, Renewal fee, and Transfer fee
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Licensing
- The licensor's earnings usually take the form of one-time payments, technical fees, and royalty payments, usually calculated as a percentage of sales.
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Advantages of Franchises
- Franchisors receive royalty payments that are set as a percentage of profits.
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Social Influences and Purchasing
- Specific forms of social influence include culture, sub-culture, locality, royalty, ethnicity, family, social class, past experience reference groups, lifestyle, and market mix factors.