Now a day it becomes a charismatic trend in the market i.e. “Without Royalty”.
People focus on less investment and more benefit. They do not want to put extra pressure on his investment budget. They become ready for paid assistance if they require in future. Understanding the today’s scenario Franchisor introduced the concept of “Without Royalty” business model in favour of low money investor. Hence the trends without Royalty business...”Craziest business model kid” came into the market.
The ability to use intellectual property of Brand creator without paying any fee is called “Without Royalty”.
Actually franchisor charge additional fee in the form of some percentage of either overall or net sales of the business as royalty for continuing administrative support and for the purpose of Branding. In absence of royalty, franchised business delink the franchisor interest that may hamper the business. Hence it is not good for both sides.
Any business depends up on the monetary gain interest, if it is absent then franchisor lost the interest.