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Royalty rates:

Suggested royalty rates for trademark registered goods / services

Royalty rate (as a % of turnover) Goods / services Example
2‐3% High‐volume goods ARO paper clips
4‐5% Accomodation Protea hotels
Animal health products Wormox
Plant / agricultural Kynoch fertilizer
Restaurants Fishmonger restaurant
5‐6% Baked goods Melissa's fine pastries
Building, construction Group 5 construction
Fast food Debonnairs Pizza
Printing services Postnet
Travel Thompsons travel
6‐7% Automotive goods Bosch service
Child‐related Yeesh! Fun for Kids
Education‐related Montessori school
Maintenance services Perfect gardens
Perfume Bulgari
Retail food Quickshop
Retail SuperSpar
Service business Don't Q
Sports & recreation Xtreme indoor Karting
7‐8% Designer labels Uzzi
Real estate services Vered
Softcover books (includes copyright) Jacques Pauw
10‐11% Hardcover books (includes copyright) Wilbur Smith
11‐12% Business services Octagon accountants
12‐13% Capital equipment Bundu electricity generators
Personnel services DAV recruitment

Royalty rule of thumb

A trademark licensee can expect to pay between 10% and 25% of the licensee's profits before interest and tax as a royalty for use of the trademark. But, to demand any royalty, the trademark must enjoy a reputation that drives custom / trade.


SA Trademark Name Royalty SA Trademark Company Name Royalty

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