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The royalty, of course, is the ongoing percentage you receive of the franchisee’s gross sales—before expenses and before profits. It is the payment you get for the continued use of your name and business system. A study made with DePaul University some years back concluded that the average royalty for the 900 franchises we surveyed [...]

Franchising Your Business

The establishment of just one company owned unit is often more than the cost of a complete franchise program. After paying the cost of the franchise program, the remaining costs of expansion (as well as most of the risk) are assumed by franchisees. And since franchisees usually pay the franchisor an up-front fee [...]