Franchisees need to dismiss the notion that royalty fees are an extra payment coming out of their pocket; they are a part of the process of partaking in the franchise system. It should be looked upon as the Franchisors share in profits derived from the consumer. The Franchisee gathers the royalty fee sum from the consumer along with the rest of the funds that keep the whole enterprise going.
The royalty fee is another aspect of the business and no business would be in business if they were not making their money from the consumer. The consumer pays for the Franchisees overhead, costs of sales, salaries, and of course the profit. It all stems back to satisfying your consumer who ultimately pays for the business to run.
The Franchisee should be happy to contribute back into the system that feeds them. A Franchisee should know that a stable, dominant, and flourishing Franchisor will only make the name of the franchise stronger creating more of a stir in the business and thus generating more potential consumers. If the root of your business franchise remains strong, the whole system will follow suit including all Franchisees.
The whole dynamic of the...
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