QuikDrop Announces Flat Fee Royalty. The new franchisor of drop-off locations for eBay customers recently announced that it will not follow traditional franchising suit by charging a royalty percentage on the franchisee's gross sales, but rather will charge a flat fee as a royalty. Under this approach, a franchisee grossing $1 million annually and a franchisee grossing $200,000 annually will pay the same franchise fee. QuikDrop says this royalty arrangement allows it to focus on customer service and spend less time with royalty administration. QuikDrop's President claims that the company draws inspiration from the success of Curves International's flat royalty program. For more on QuikDrop, see blog entry from February 20.
Posted by franchiselawblog at February 24, 2004 10:23 AM