plz help..royalty fees?

[maldives]

Hi I have been reading a book about franchising, If a company states it has a 5% royalty fee. does it mean if i was a franchisee i get to pay them 5% of gross sales or i get payes 5% only?
i searched for the definition but still my pregnant mind doesn't serve me
http://www.moneyglossary.com/?w=Royalty+(or+Royalty+Fee)

 

[Nicola]

I might be wrong but I'm sure a royalty fee is paid for the use of a franchise/patent on something. i.e. anyone can open say a McDonalds, you just have to pay for the franchise and yearly pay a 'fee' to use the patent trade marks/signs etc, i.e. the "McDonalds" sign the "lovin' it" slogan they have patented etc.