Glossary
Royalty
A royalty is a share of your sales that a franchise owner pays to the brand, on every job, for as long as they own the business. Floor franchises like N-Hance and Mr. Sandless list a 6% royalty.
What is a royalty?
When you buy a franchise, the up-front fee is only the start. Most franchises also charge a royalty. It is a percent of your revenue, paid to the brand on every job, month after month, for as long as you own the business.
Two of the best-known floor franchises, N-Hance and Mr. Sandless, both list a 6% royalty in their franchise disclosure documents. Mr. Sandless also lists a minimum royalty of $600 a month, so it comes due even in a slow month.
Here is what 6% looks like on the FloorIt job example of $2,499. The royalty on one job is about $150. On 100 jobs, it is about $15,000. On 500 jobs, it is about $75,000. These are examples, not promises, but they show how a small percent adds up over the years.
A franchise gets paid on the buy-in, plus fees and royalties, whether or not it helped you find customers. FloorIt does not take a royalty or any cut of your jobs. Our long-term money comes from the finish you reorder, and you only reorder when you are doing jobs.
Before you choose any program, ask two questions. Do I pay a cut of my jobs? And for how long?
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