Royalties
Periodic fees paid by the franchisee — typically a percentage of revenue or a flat monthly amount — in exchange for continued use of the brand, know-how and franchisor support.
In practice
The rate must balance value received against franchisee margin: too low and the franchisor cannot fund network animation; too high and it strangles its own partners. Around 5-9% of revenue for an accompanied service network is common practice, sometimes supplemented by a fixed technology fee when a proprietary platform is provided. A network of 100 franchisees each generating 500,000 euros at 5% royalties returns 2.5 million euros in recurring income to the franchisor.