
How to Assess the Royalty Calculation Base When Buying a Franchise
Do not compare royalty rates alone. Make sure the contract clearly explains how VAT, returns, discounts and platform sales affect the calculation.
Read morePractical guides to buying a franchise in Türkiye: choosing a brand, due diligence, costs, finance and local rules.

Do not compare royalty rates alone. Make sure the contract clearly explains how VAT, returns, discounts and platform sales affect the calculation.
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Who owns the trade mark, and who can authorise you to use it? Check the chain of authority and the risk of trade mark disputes before signing.
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Turn training and operational support promises into measurable contractual obligations, clarifying their scope, costs and your rights if services fall short.
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Learn how to check territorial boundaries, online sales exceptions and the risk of new outlets opening nearby before signing a franchise agreement.
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Not every breach of contract should have the same consequences. Learn how to assess notice requirements, time limits for remedying breaches and termination terms before signing.
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Who will take your remaining stock when the agreement ends? Clarify stock returns, buyback prices and payment terms before you sign.
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Test a brand’s turnover and payback projections against data, costs and local conditions, and base your investment decision on verifiable information.
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The right to trade under a brand name is not the same as buying into a business model. Examine the rights and responsibilities a franchise offer actually includes.
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Protect business continuity by checking the costs, outage risks and access conditions of mandatory software before you sign.
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Paying a set-up fee does not necessarily mean you own the equipment. Clarify ownership, usage rights and maintenance terms before signing.
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Can you continue trading under the same brand when your agreement expires? Review renewal rights, application deadlines and the terms for the next period before signing.
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Before signing, check who bears withholding tax on payments to an overseas franchisor, the documents needed for treaty relief and any net payment clause.
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Before signing a franchise agreement, assess any requirement to run the business yourself, your right to appoint a manager and the rules that apply in your absence.
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Review loan approval, payment schedules and franchise commitments together to identify any funding gap before you sign.
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Review the operations manual, technical specifications and fee schedules before signing to reduce the risks of missing documents and conflicting terms.
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Before signing, clarify how the minimum sales target is calculated, when it starts to apply and what happens if you miss it.
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How does a compulsory closure or disaster affect franchise obligations? Review the notice, payment and reopening provisions before signing.
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Before committing to open several outlets, examine the timetable, investment requirements and consequences of missing your targets.
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A confidentiality agreement should not prevent proper due diligence. Check what information it covers, whether advisers can access it and what obligations remain when discussions end.
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Before signing a franchise agreement, assess its insurance requirements, including cover, excesses, business interruption and claims payments.
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Is there a dedicated register for franchise agreements in Türkiye? Learn how to distinguish notarial procedures, trade registration and claims of official approval before signing.
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Who pays which costs if opening is delayed? Make sure your franchise agreement clearly sets out the timetable, handover conditions and rights arising from delays.
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Check who will sign the agreement and which company will take on the obligations. Find out which documents to review before making a payment.
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Review your lease and franchise agreement timelines together to reduce the risks of opening delays, mismatched terms and lost investment.
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Before taking over an established franchise business in Turkey, check the franchisor’s approval, outstanding debts, lease arrangements and exactly what the purchase price covers.
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Examine how a non-compete clause in a franchise agreement could affect your existing businesses, shareholdings and investment plans.
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Find out where your advertising contributions go. Explore the safeguards to request before signing, covering budgets, reporting and unspent funds.
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Can an operations manual change your obligations after signing? Before buying a franchise in Türkiye, examine the rights to make changes and your options for objecting.
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Ask existing franchisees the right questions to assess how the brand operates day to day and whether its expectations of owners suit you.
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Clarify the scope, scoring and cost of brand audits before signing, and ensure you have a clear process for responding to findings and putting shortcomings right.
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Türkiye has no mandatory franchise disclosure document. Learn what information to request before signing and how to keep a record of the answers.
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Review court jurisdiction, mediation and arbitration provisions before signing to understand the process and potential costs of enforcing your rights.
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Who can access customer records? Before buying a franchise in Türkiye, clarify responsibility for data, sharing with the franchisor and obligations under the KVKK.
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An opening budget alone is not enough. When investing in a franchise, assess cash shortfalls, loan repayment schedules and working capital needs together.
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Before signing a franchise agreement in Türkiye, review its penalties: what constitutes a breach, the time allowed to remedy it, how penalties are calculated and your total exposure.
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Which documents can help you assess a franchisor’s finances in Turkey? Review debt, cash flow and the corporate structure before signing.
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Refurbishment, equipment replacements and software upgrades can strain your budget. Before signing, review your investment obligations and the franchisor’s power to make changes.
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A personal guarantee can put your personal assets at risk for company debts. Before signing, check the amount, duration and conditions for release.
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Who sets selling prices? Assess the pricing, discount and promotion clauses in a Turkish franchise agreement for their impact on competition compliance and profitability.
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Brand approval does not guarantee a business licence. Before leasing franchise premises in Turkey, check permitted use, required approvals and the risk of delays.
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Before paying a franchise deposit in Türkiye, clarify the payment’s legal purpose and refund terms, and verify the company receiving the money.
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Clarify ongoing franchise fees, advertising contributions and software charges before signing, so you can see the true monthly cost of the agreement.
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Find out which documents to check to verify trade mark registration, the chain of authorisation and your contractual usage rights before paying a franchise fee in Turkey.
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Turn franchise training and support promises into measurable contractual terms. Check the scope, additional costs and your rights if services fall short.
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Assess the boundaries of territorial protection, online sales exceptions and the safeguards to look for in a franchise agreement before you sign.
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Review compulsory purchases, price changes and stock obligations before signing to understand your franchise’s true supply costs.
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Before buying a franchise in Türkiye, review the termination, transfer, security and non-compete clauses so you understand your exit costs before signing.
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A practical guide to assessing a franchise brand’s turnover and profitability claims in Türkiye through supporting records, outlet comparisons and contractual safeguards.
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