Franchising and marketing royalties

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Royalties for the use of management software: many franchise networks include in the royalties the rental and update costs of management software, essential tools for managing and optimizing daily operations in the affiliated outlets.
Royalty for staff selection and support: the staff selection is often supported by the franchisor, with the possibility of participating in the final interviews of new employees. This service strengthens the cohesion and standards of the entire network.
Royalty for the use of the brand and know-how: the use of the franchisor's brand and know-how is another fundamental aspect covered by the royalty. These elements contribute to the engineer data recognition and value of the brand, offering the franchisee an important competitive advantage.
Marketing Fund and Royalty: The Differences


It is important to distinguish between a royalty and a marketing fund. The marketing fund is a collection of resources that all franchisees contribute to create to promote the brand and increase the flow of customers in the stores. Unlike the royalty, the marketing fund can be fixed or variable and is used to finance joint advertising campaigns. In this context, geomarketing plays a strategic role, allowing you to identify high-potential geographic areas and customize campaigns for each local market. Using demographic and location data, the franchisor can optimize marketing investments and reach the target of each store more precisely, maximizing the effectiveness of the campaigns.