“What is covered in Franchise Fees?” We are frequently asked. This is one area that can be complicated at times and something you should speak with the various Franchise Brands about, but I also came across an intriguing and helpful essay produced by Home Franchise Concepts. I wanted to share some of the article’s highlights with you:
- Initial Franchise Fee – not to be confused with the total upfront investment, the franchise fee is a one-time payment payable to the franchisor at the time the Franchise Agreement is signed. This information is frequently available on the company’s website or in the Financial Disclosure Document (FDD).
- Comprehensive Support & Training – The proper franchisor will commit time and resources to training and educating you and your staff to run your business with confidence and finesse.
- Ongoing Fees – In addition to the initial franchise fee and other costs associated with launching your new company, franchise royalty fees are paid on an ongoing basis. In addition to royalty costs, an advertising charge is paid to the franchisor on a regular basis.
- Next-Level Marketing – In exchange for services performed, franchisors often want an ongoing marketing royalty to be paid. The amount of marketing skill and commitment is an evident benefit for franchise investors.
If you would like to learn more about the franchise industry, including brands within Home Franchise Concepts, please call or email us for a brief 20-minute consultation.
According to franchise economy portal, there are 733,000 businesses that employ 7.6 million people and pay $269.9 billion in payroll! Furthermore, employees enjoy greater compensation and more perks as compared to non-franchise organizations.
Learn more about the requirements for owning a franchise business here
