Royalty Franchising: What is it?

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Franchising royalties are one of the fundamental elements of the relationship between the franchisor (the one who grants the brand and the business model) and the franchisee (the affiliate who uses these resources to start and manage a business). In essence, royalties represent a periodic compensation - usually monthly, but sometimes also weekly or quarterly - that the franchisee pays to the franchisor. This compensation is the economic recognition for access to and use of strategic assets that belong to the parent company and that are the dentist data basis of the success of the brand, including the brand, know-how , and support services.

What does “zero-royalty franchising” mean?
Often you see franchise offers with zero royalties or very low entry fees. This solution may seem advantageous to attract affiliates, but it carries risks : the franchisee may perceive the franchisor as a simple supplier and not as a partner. This can reduce the perceived value of the brand and generate a high turnover, with affiliates who may even become direct competitors.