If the minimum Royalty Advance per performance is less than 16% of our ticket sales do we get a discount?

We have a very small theatre (80 people) so the minimum royalty advance per performance can make it very prohibitive to put on a show and sell tickets for a good price as well as pay our tech costs. I notice that the royalty price on quite a few of the junior shows are 16% with a minimum royalty advance per performance of $187 (NZD approx). That is nearly the price of 10 tickets and is fine if tickets sell well, but if they don't we make a loss. Is the royalty payment the lesser of those figures?