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Resources
Case In Point® Opens Private Investigator Franchise In Tampa
TAMPA, FLORIDA (ContentDesk)November 6, 2003—Case In Point®, the nation's premier Private Investigation Franchise and a significant provider of diversified investigative services, announced this week Read more...
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Resources
Converting Independent Business To Franchise
By Barney Garcia
In recent times there has been the prevalence of conversion of independent businesses in same industry into franchise units. This has fostered the rise and growth of a number of franchise systems. Read more...
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Resources
How To Finance Your Franchise
Over the past several years, many people across the country have envisioned leaving their current work environment for the opportunity to own a business or franchise. In many ways that is the easiest Read more...
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#Welcome to
Dhyansanjivani... franchise world - your comprehensive franchise resource.
Below, you'll find most information
on leading bird franchise articles and products to help you on your
way to success.
What Are Franchise Royalty Fees?
Franchise royalty fees vary from one franchisor to the next. They can be very simple or somewhat complex. To begin with, let’s examine why franchisors assess a fee in the first place.
Franchisors are allowing you, the franchisee, to utilize their proven business model in order to successfully run your franchise. Franchisors will assess an upfront fee to get you in the door and help you get your doors open for business. But this upfront fee basically covers their costs. It is not really a profit generator.
The primary source of revenue for a franchisor is the ongoing revenue generated from your business operations. In that regard, it is in the franchisor’s best interest to make sure that you are successful.
The best way to illustrate the different types of fee arrangements is to give you some examples. Here are 5 franchise opportunities that I like:
- Handyman Matters. This is a handyman with over 130 franchised units. They assess a 6% royalty on gross revenues and a 1% contribution to a national advertising fund. This is a fairly typical arrangement.
- Maui Wowi. They are the largest Hawaiian Coffee/Smoothie in the United States with 320 franchised units. They do not assess any royalty fees. Instead, they assess a 12% Advertising Fee based on product purchases (not gross sales).
- Pressed 4 Time. This is a mobile dry cleaning with 180 franchised units. They assess a typical royalty fee however it is scaled based on the monthly revenue. If the monthly revenue is less than $15,000/month, the monthly royalty fee is 6% of gross revenue. If the monthly revenue is between
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