Cleaning franchises can offer a range of benefits and drawbacks for aspiring business owners in the cleaning industry. Understanding the […]
The royalties are the franchisor’s income and reward for developing the brand and the structure of the overall operations. Royalties also serve to finance upgrades to technology, conduct Discovery Days, and manage the aggregate development of the corporation.
Usually royalties are 5-8 percent of the franchisee’s monthly gross sales. In other cases, a franchisor will charge a higher rate based on net sales (after expenses have been deducted).
A transfer fee, usually described in the FDD, is an obligation placed upon the franchisee seller of an existing franchise. The fee requirement protects the franchisor from incurring the administrative costs of a transfer, which is another term for “resale.”
Without such a fee, the franchisor would be unable to re-coup the expenses associated with numerous resales, which would become prohibitively costly.
However, the fee is negotiable in most cases. This is particularly true if and when the franchisor is eager to dissolve the business relationship with the current franchise seller because of poor management.
Cleaning franchises can offer a range of benefits and drawbacks for aspiring business owners in the cleaning industry. Understanding the […]
Introduction The Starbucks franchise brand has become synonymous with premium coffee and has a global presence with thousands of locations. […]
Manufacturing franchises can potentially build your wealth in several ways: Established business model: Manufacturing franchises typically come with an established […]
Chick-fil-A is a popular American fast-food restaurant chain known for its chicken sandwiches, nuggets, and waffle fries. The company was […]
If you're considering owning a printer franchise, here are some things you should know: Printer Franchise Training and Support Most […]
Is the thought of owning your own business and being your own boss interesting to you? Would you prefer to […]