Overview

Royalty payments are collected as part of the ongoing agreement between franchisees and Calculated Performance. These payments are calculated as a percentage of the revenue generated by the centre and are paid regularly as part of the franchise structure.

Understanding when and how royalties are collected helps franchisees manage their finances and ensure that all financial obligations are met on time.

When Royalty Payments Are Collected

Royalty payments are typically collected on a monthly basis, following the completion of the previous trading period.

This means that the royalty amount is calculated based on the revenue generated during the previous month. Once the revenue has been confirmed, the royalty payment can be calculated and collected accordingly.

Regular monthly collection helps maintain a clear and predictable financial structure for both the franchisee and the wider network.

How Royalty Payments Are Calculated

Royalty payments are calculated as a percentage of the centre’s revenue.

The calculation is based on the total income generated through memberships and training sessions during the reporting period.

Because royalties are linked to revenue, the amount paid will increase or decrease depending on the financial performance of the centre.

Submitting Revenue Information

In order to calculate royalty payments accurately, franchisees may be required to provide revenue information for the relevant period.

This information helps ensure that:

  • The correct royalty amount is calculated

  • Financial reporting remains transparent

  • Both parties maintain accurate records

Providing accurate revenue information is an important part of maintaining the franchise agreement.

Processing the Payment

Once the royalty amount has been calculated, the payment will be processed through the agreed payment method.

This may involve:

  • An automatic collection from the franchisee’s account

  • A scheduled payment arrangement

  • Another agreed payment process

Franchisees should ensure that sufficient funds are available when royalty payments are due.

Maintaining Accurate Financial Records

Royalty payments should be recorded within the financial systems used to manage the centre’s accounts.

Franchisees should ensure that:

  • Royalty payments appear within their financial reports

  • Accounting records remain accurate

  • Monthly financial tracking reflects the payment

Maintaining accurate records helps support clear financial management.

Summary

Royalty payments are collected regularly as part of the franchise agreement.

Franchisees should understand that:

  • Royalties are typically collected monthly

  • Payments are calculated as a percentage of revenue

  • Revenue information may be required to confirm the amount

  • Payments should be recorded within financial systems

Understanding the timing and process of royalty payments helps franchisees manage their financial responsibilities effectively.