A fixed-value royalty stays the same for the duration of the license contract, regardless of whether the revenue generated by the trademark increases or decreases. A fixed value royalty fee means that, if the trademark performs well and achieves quick and substantial rates of growth and profit, the licensee’s royalty payment will seem relatively low in the long term. However, if the organization’s profits relating to the trademark do not increase significantly, the fixed value may not be advantageous. While the licensor’s return will not increase, a fixed value royalty does ensure a set amount of trademark-related income, which can be considered financially beneficial.