Royality payments going up and down!!!!

My aunt has about 10 acres not far from Longwood general store and has signed a lease a few years ago and she said that her royality payments go up and down depending on activity has anyone experienced this that has already have leases. I just didn't know how that works i would think that the percentage of royality that they offer would apply to the full lease aggreement.

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Replies to This Discussion

Permalink Reply by carol on July 15, 2008 at 1:39
Thanks, that makes sense now.
Permalink Reply by J Todd on July 16, 2008 at 11:35
The royalty percentage stays the same I believe. But since it is a PERCENTAGE, it will vary. For example 25% of $100 is very different from 25% of $100,000, but the percentage rate is the same. Royalty income will always be dependent on the current value of the product which is being leased. Hope this is the case.

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