No, that's wrong. its not a zero sum game at all.
RFG take a royalty on sales, meaning if the franchisee makes X, RFG takes 0.1X and franchisee keeps 0.9X and is then expected to run their business appropriately in order to generate profits for themselves. its standard across many business agreements.
if sales, X, go up, then both the franchisee net revenue and RFG's royalty increase. if sales languish, RFG take a smaller royalty and the franchisee has to deal with tighter margins. its not zero sum at all.
its simply RFG taking a top line cut, as opposed to a share of profits, and is a totally acceptable way to manage risk when you effectively do not control the business operations.
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No, that's wrong. its not a zero sum game at all. RFG take a...
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