Do CFL players receive royalties for jerseys and other merchandise when there names/likenesses are used?

Not that I've ever heard.

I think that the PA gets a small cut, but not entirely sure.

They would use that in their general revenue I suppose, running the union and either dividending to players or putting into pension funds, but I am just guessing here.

Yes , they get a small % . It is in the players contract.

So the % goes in a pot and is then distributed to the players equally or each player gets % based on his merchandise sold. I guess Im wondering if Andy Fantuz got extra royalties for Fantuz Flakes. And if so, is the % based on the players union contract or each individual contract.

Well to really know for sure, then you'd have to read the details of the CBA.

In the case of Fantuz Flakes, I think it would depend. If Andy did the endorsement himself without the team or the league involved, he would earn all his own fee. However, if the Riders team name or logo were used say in the box photo, then the league and team would get their cut. If Andy just wore a plain green jersey and helmet he could sell his own endorsement and collect all the money - I think.

I THINK the teams sell their stuff and get the bulk of the profit, but send a cut to the league and a cut to the players' union.

Sometime you will see an athlete on a product in a generic uniform. I've seen Shaq wearing a plain white uni and a plain blue 32 on the front in a magazine ad for what I can't remember. That means that it is his own personal endorsement and the Magic (at the time) and the NBA were not involved.