Initial Franchise Fee - The 4 critical factors to your success

As candidates progress through the due diligence process of evaluating a specific franchise, are often presented with this very common question of a cost to become a franchisee: - "What exactly does the franchise fee cover and how can I take advantage ? "-This is a great question that must be addressed. -

Before answering this question, it is important to keep in mind that starting up a business like new "mom and pop" is statistically very risky.-Several studies have suggested that 90-95% of newly independent fail within two or three years. -When it comes to franchising, however, much of the risk is reduced, or even eliminated.-Although there are no guarantees, this business model is the closest you get to a guarantee of success. The same studies to show that a new franchise business rarely fails.-The reason for this is because the trial and error has already been done many times by the franchisor that has reached the inevitable point try and succeeding.-Remember that the franchisor has literally saved you many years of valuable time developing and perfecting a duplicatable System.-not 's easy to put a dollar figure on that.

That said, all franchises require an initial franchise. And as a potential franchisee of this activity, you need to know exactly what you receive in exchange for the lump sum. -

Here there are only 4 of the key elements that should be required in exchange for the license fee you're paying for: -

Brand-Name. Obviously, this part of the consideration for the license can be of great vary.-Are you considering a franchise that is a family name, or one that is less known by name?-While in some cases the label may be enormously expensive, others can be a great deal for you.-A popular burger franchise will cost $ 1.5 million, while 1-800-Dry Clean, a successful franchise pickup and delivery, can be purchased for less than $ 70.000.-E .. . you have your phone number business built on the brand!-That is huge.

Discounts Suppliers -. Your franchise fee entitles you to buy from preferred suppliers of the franchisor, which allows you to enjoy the significant savings that buying mass-provides. As more franchise locations open, you reap the benefits by paying less -.

Education E-Support. This can be invaluable to you as a franchisee, especially if you're new to business ownership -. Many franchisors provide two weeks of initial training at their home for you and key members of staff and continuous training in the form of workshops and conventions.-You 'll also have access to telephone support from experienced business staff, so just only a quadrant of distance, available 24/7 in some cases. -

You will be provided with the franchisor's operations manual. included in this are issues such as vendor and employee relations, accounting and billing, royalty payments, as their focus, planning, safety and community-relations. I can not stress enough how valuable this book is for you, as a franchisee, and the overall success of your business. -

National Advertising E-Marketing. The franchisor conducts ongoing national marketing campaigns that directly benefit, such as television, radio, and targeted, high print-run media. Maybe your strength is in advertising and affiliate promotions.-How , your company can still grow as a result of a strong national marketing, while you are building your marketing skills training using the franchisor. -

These are some of the key elements that most but not all, franchisor-provide. You must perform a self-assessment to determine what is essential for you while conducting a search for your perfect franchise business.-Although the process can be very involved and complicated, free help is always available in the form of a franchise consultant. -

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