Clean craft charge royalty fees on franchises for several reasons:
Brand Awareness: The franchisee is using the company's established brand name, logo, and marketing materials. The royalty fee helps to maintain the integrity and consistency of the brand.
Ongoing Support: Franchise companies provide ongoing support to franchisees in the form of training, marketing, and operational guidance. The royalty fee helps to cover the cost of this support.
Research and Development: Franchise companies invest in research and development to improve their products, services, and systems. The royalty fee helps to recoup these costs and fund future R&D efforts.
Advertising: Franchise companies often run national advertising campaigns that benefit all franchisees. The royalty fee helps to fund these campaigns and ensure that the franchisees receive the full benefit of the advertising efforts.
In summary, the royalty fee helps to ensure that the franchisee has access to the tools, support, and resources they need to be successful. It also helps to ensure that the franchisor's brand remains strong and recognizable, which in turn benefits all franchisees.
