# Royalty and ad-fund load

A term used when buying franchise resale.

The two ongoing cuts of revenue a franchisee owes: the royalty and the marketing fund.

Coverage arithmetic on a resale runs on earnings after this load and after a market salary for whoever runs the place, which is the line first-time buyers forget when a franchised unit looks cheap beside an independent. Add the required refresh too: most agreements oblige a remodel on a schedule, and a unit approaching its date carries a capital bill the seller has been deferring and you cannot.

Part of: Buying a Franchise Resale (https://searchspheresource.com/guides/buying-a-franchise-resale)

Source: https://searchspheresource.com/guides/buying-a-franchise-resale/terms/royalty-and-ad-fund-load
Not dated: The same editorial definitions as the glossary, inside a trade.

Site index for machines: https://searchspheresource.com/llms.txt