Why prefer a variable royalty?

[MasudIbne756]

A percentage royalty fosters a partnership relationship : both the franchisor and the franchisee earn based on results. The franchisor thus has a direct incentive to grow the franchisee's business by providing ongoing service and support.

Types of services included in the Franchising royalty
Let's now see what services can be included in the royalty payment engineer data and how these support the success of the franchising network.

Training Royalty: Continuous training is essential to ensure a solid and competent network. Initial training and a refresher course are often included in the royalty to maintain know-how and quality of services.
Royalty for supervision and monitoring: a good franchise also includes a constant supervision system, such as the presence of an Operation Manager who monitors the franchisee's sales performance and results on a weekly basis, ensuring compliance with company standards.