Definition
Royalty
The recurring fee a franchisee pays the franchisor, usually a percentage of revenue.
From the episode “Padel, Pilates and Plunges: How James Hurlock Is Scaling a $20M Multi-Brand Fitness Franchise”Hear it on the podcast1 episode
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Related terms in Finance & Markets
Revenue cycleThe financial workflow from patient encounter to payment, including coding, billing, and claims processing.Right of publicityThe existing legal right to control commercial use of your name, image, and likeness. State-level in the US, uneven internationally.Rogue SpendPurchases made outside a company's official procurement process - typically on corporate cards or personal expense reports because the approved system is too slow or painful. Represents cash leaving the organization with no oversight.Rogue Spend AuditA review of corporate card and expense transactions to identify purchases made outside the official procurement process. The first step in understanding and controlling unmanaged spend.Royalty sufficientThe point where royalty income covers the franchisor’s operating costs.Secondary offering or rights issueA company raising new money by selling more shares.Self Control AssessmentWhen a team audits its own compliance against the rules it wrote — the step before an independent external assessment.Self-funded planAn arrangement where the employer pays employee medical claims directly rather than buying a fully insured plan, often using a TPA to run it.