Explore our glossary of useful terms for more franchise information. Below is an explanation of royalty fees in terms of franchising. Find franchises for sale in our directory, which contains listings of opportunities divided by industry, investment and location.
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Also referred to as the “management service fee”, these fees are the continuous payments the franchisee gives the franchisor to stay part of the franchise system. They are usually based on a percentage of the gross revenue of the franchise unit. The average royalty fee in the USA is 6.7%.
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