Franchise Fees: What is high? What is low? What is right? What is wrong? Charles N. Internicola and Nick Powills give a few insights on the information that you need.
1. Purpose: Franchise fees may pay for the brokers expenses.
With a broker involved in a purchase of a franchise, they are owed a sum of money for their services to the business. Most likely the franchise fee will cover the money that the broker is owed and the franchisee will now have the license to use the products from the business.
2. Value: Higher franchise fees can be good for a business.
If one franchise's fees are higher than another, that doesn't mean you need to spend less to save yourself money. The larger amount of money may mean that the business is better than the other. The franchise fees shouldn't prevent you from becoming a franchisee.
3. Structure: Distinctions for franchise fees.
Currently, franchise fees that the franchisees pay don't have to be disclosed by the franchisor as to what they go towards. Nick proposes that there be a distinction between the franchise fees to figure out what percentage goes towards brokers or in the pockets of the franchisor.
CREATE YOUR FREE FRANX PROFILE: https://franxlaunch.com/
SUBSCRIBE to our Channel: https://www.youtube.com/channel/UC9JuzJQGcBr5cw26trxM7BA?sub_confirmation=1
JOIN Franchise Growth Mastermind Community: https://www.facebook.com/groups/1464519290241259
