Business GCSE
Royalties
What Royalties means in Business GCSE, as defined for Pearson Edexcel.
Definition of Royalties
Check what you remember
Read the wording for your board, then hide it and explain Royalties in your own words. Rough notes are fine. This is a self-check, with no mark or grade.
Reference: Pearson Edexcel
Ongoing payments from their revenue that the franchisee must pay, which reduce profit margins compared to an independent start-up.
Topics that use Royalties
- The options for start-up and small businesses (Pearson Edexcel GCSE)
Related terms
- Limited liability
- Partnership
- Private limited company (Ltd)
- Unlimited liability
- Franchise
- Franchisee
- Franchisor
Using Royalties in the exam
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