What is a Franchise fee?

Franchise fee is basically the amount of money you have to pay for the usage of the business model of the company. Franchise fees come in two types, one is the one time payment, and the other is the royalty fee. The one time payment is usually a large amount of money and is usually paid out before starting the franchise contract. Upon the renewal of the franchising contract, … [Read more...]

What Are the Advantages of Franchising?

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Today I am going to discuss the advantages of franchising. Perhaps the biggest advantage of franchising is that you are riding in an already successful business system. This is the reason why the franchising industry has a really low failure rate (around 10%). Everything is set, you just have to follow directions. Along with this successful business model is the brand … [Read more...]

Back to Basics: What is Franchising?

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Franchising is a contract.  It is a partnership between a corporation and an individual. The contract is to use and capitalize on the company's successful business model and/or it's existing brand awareness (most often called Goodwill) for a faster return of capital. So that means if you start a franchise, you are not buying rights or a business, and you are not buying your … [Read more...]