In Canada, franchise royalties are ongoing fees paid to the franchisor, usually a percentage of sales or a fixed amount, and must be clearly disclosed in the provincial franchise disclosure documents.

Franchise royalties in Canada are usually a monthly percentage of your sales, set by the franchisor. There isn’t a special national law that controls the exact amount it just has to be clearly disclosed and fair. For most owners, it feels like paying for the support, brand power, and guidance that help you stay on track, even on the tough days.

In Canada, franchise royalties are ongoing fees that franchisees pay to the franchisor, usually calculated as a percentage of gross sales or a fixed amount. Under provincial regulations, franchisors must clearly disclose royalty structures in the Franchise Disclosure Document (FDD) before any agreement is signed, ensuring transparency. These royalties fund brand support, training, and marketing, and while they reduce short-term profits, they help maintain brand consistency and drive long-term growth. Understanding the royalty model is essential for managing cash flow and profitability.