As the government pushes through legislation to approve the controversial gas agreement,
one of the most important items in the negotiation for the national economy, which
will determine how much the State will benefit from this deal, is the amount
of Royalties to be paid by the producers of the gas to the owners of the land being
drilled, in this case the Israeli government.
Royalties are more commonly paid to the author of a book
based on the number of copies sold,
or to the writer and performer of a song every time it is played on the radio.
(for those too young to remember, these are the records we used to buy of our favourite songs).
Royalties are a source of Passive Income for the artists.
Another financial term (money has lots of names !) is used by businesspeople who
pay for a special license to manage and operate a branch of a business, particularly
fast food chains (but not only).
This is known as a Franchise.
We need the gas to cook our burgers, so somebody will have to pay a Royalty and
someone else pay a Franchise to make it happen !
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