Franchise royalties refer to the ongoing payments made by a franchisee to a franchisor in exchange for the right to use the franchisor’s brand, business model, and support services. These payments are typically a percentage of the franchisee’s sales and are a key source of revenue for the franchisor. In return, the franchisee gains access to a proven business concept and the support of an established brand, allowing them to operate their own business with the backing of a successful company. Franchise royalties are a crucial aspect of the franchising model, providing a mutually beneficial relationship between the franchisor and franchisee.