How much is the Royalty Fee & Marketing Contribution?
The Royalty Fee and Marketing Contribution uses a flat or “Fixed Fee” structure thus providing you with a real incentive to maximise your income as additional income will not be subject to additional Royalty Fees (& Marketing Contributions). Naturally these fees will be increased annually with CPI. To further assist you in getting started ( in addition to the initial 8 week income guarantee ) there are reduced fixed fees for your first eight weeks in business, the 1 st four weeks being at a combined total of $280/week increasing in the 2 nd four weeks to $420 per week, this being 50% and 75% respectively of $560, this being the combined fees for the remainder of the year. To slowly increase the Franchisor income to a more realistic 25% (of benchmark income) it is proposed to increase these fees by 5% per annum for the first 5 years, this being in addition to the annual CPI increases.
