What Is Royalty Fee In Its Franchise Business And Function?

Illustration of fee royalties (Freepic)

YOGYAKARTA - In the franchise business, there is a term royalty fee payment. If you want to start a business as a franchise or franchise recipient, then you need to know what a royalty fee is. because this cost is very important in the franchise business, especially in the establishment of good cooperation between franchises and franchises.

Franchise or franchise is a business that is of interest to many people. There are many advantages from the franchise business model, ranging from existing products, brands or brands that are well known to the public, management has been formed, branding is already running, to having professional partners and promotional media.

The franchise business model is perfect for those of you who don't have much time and energy to build a business from scratch. If you intend to become a franchise then you must understand what a fee royalty is.

Royalties fee is a fee for the use of the name or brand of a company that offers a franchise. This fee must be paid by a franchise (receiver of the franchise) to the franchise (owner of the franchise). Royalties fee will be paid within a certain period of time during the use of the brand.

Royalti fee is a form of contribution to revenue revenue received by the franchise and must be paid before due according to the franchise agreement. In general, royalties are in the form of percentages of income received by franchises every month and outside of tax.

Why should there be a fee royalty in the franchise business? Royalties are not held suddenly or in the interests of one party. These costs provide benefits for both franchises and franchises.

Royalti fee will be used for various purposes for the smooth running of the franchise business. The following are a number of functions of royalties fees in the franchise business:

There are two types of royalties that are usually applied in the franchise business, namely fixed royalties and royalty margins.

Fix royalties are the costs paid and the amount is not affected by the increase or decrease in income. So the amount of the fee paid is fixed every month.

The royalty margin is a form of payment whose costs are set by the percentage of total monthly sales. So the amount or nominal cost can change at any time according to the sales results.

Demikianlah review apa itu royaltifee dalam bisnis franchise. Royalti fee merupakan biaya yang harus dibayarkan oleh franchise (penerima franchise) kepada franchise (pemberi franchise) untuk kepentingan penggunaan produk dan berbagai fungsi yang mendukung operasional bisnis.

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