If you are thinking of turning your current into a franchising company you will need to determine a fair and equitable franchise royalty fee. There are a number of questions you will need to ask yourself in determining this fee such as what services you will provide to your franchisee team and what that will cost. You will also need to take a look at the competition to determine the amount that you can honestly charge without forgoing cost conscious franchise buyers.
It is also important once you go thru this strategic brain exercise to put into your confidential operations manual the procedures for royalty payment and explain why these royalty payments are necessary and how such money is used to maintain the franchise family and system.
Below is an outline to help you with your formulation of a chapter for your operations manual. I recommend that your print this article and modify it to fit your particular franchise system or future franchise company. First go ahead and modify the items then for each number and letter item write three paragraphs to your best understanding of how you will operate the royalty payment system. After this is completed you have yourself a working rough draft for insertion into your Confidential Operations Manual. Continued Success.
ROYALTIES
I. REASONS FOR ROYALTIES
II. WHAT YOU GET
III. FRANCHISOR
IV. DIRECT PAYMENT (AUTOMATIC DEBIT)
V. CREDIT CARD SYSTEM
VI. NON PAYMENT
VII. AUTOMATIC DEBIT BOUNCING
VIII. AMOUNTS
IX. REGIONAL ADVERTISING FUNDS
"Lance Winslow" - If you have innovative thoughts and unique perspectives, come think with Lance; www.worldthinktank.net/wttbbs
eco-friendly cleaning service Buffalo Grove ..A tongue-in-cheek look at the skills required to operate a... Read More
What is the Big Race all about when it comes... Read More
Now that winter has passed, the annual ritual of spring... Read More
Why are we over regulation the franchising industry, what purpose... Read More
Most small business owners seek advisors who can help them... Read More
My colleague, Jane, recently lamented to me an all too... Read More
Just when the entire state was kissing Wichita goodbye, economically... Read More
Over the years I heard the best way to learn... Read More
1. Know Where You're Going ? Coach Herb Brooks had... Read More
One of the best marketing strategies a business or organization... Read More
Every company has a value proposition. That is a statement... Read More
The resume writing service serves an important role in the... Read More
If you are looking for a franchise opportunity, the choice... Read More
Multimedia is everywhere on the Internet, whether in the form... Read More
The less a business pays for goods and services the... Read More
Fuel prices these days are quite high and they take... Read More
Many physical therapists in private practice have the appearance of... Read More
"Inch by inch, row by row...that's the way my garden... Read More
As you reflect on this year and prepare for next... Read More
The Workers' Compensation situation in this country is unbelievable. Why,... Read More
Q: I will be retiring this year at age 60... Read More
Starting a business? For many people, the bravery to venture... Read More
Is it right for you?If you decide to advertise your... Read More
Ok, you have successfully accomplished your dream of being the... Read More
If you own a small business, then you know the... Read More
express cleaning service Arlington Heights ..Everyone wants to succeed in life. Most people want to... Read More
Most businesses accept checks as form of payment for goods... Read More
What would happen if you decided to take an extended... Read More
One of the great challenges for independent professionals and small... Read More
Aircraft Interiors of personal and corporate jets have hundreds of... Read More
If you are the boss and you think your job... Read More
American small business is again in transition. Many employees, now... Read More
As the owner or an employee of a small-to medium-sized... Read More
Your business account comes with an ATM, Debit card. Pick... Read More
Small businesses need Public Relations, possibly more than large corporations,... Read More
CARD SHARK7 Card Tricks That Improve Your Personal Networking PowerThe... Read More
Whether your target audience is in your neighborhood or across... Read More
The employer / employee relations environment has been constantly evolving... Read More
On June 8, 2004, the world witnessed what no one... Read More
If an organization lacks a mission statement, it is worthwhile... Read More
How do you find groups that are in need of... Read More
According to the American Society for Aesthetic Plastic Surgery, since... Read More
Sometimes the simple businesses are the ones, which make good... Read More
A janitorial cleaning service is one of the best businesses... Read More
BioTechs even with the latest news had shed over 1000... Read More
How often have you thumbed through a business opportunity magazine,... Read More
If you ask most small business owners what priority CRM... Read More
Which questions do you need to ask to even get... Read More
As you may know, there are many ways to incorporate... Read More
As small business managers, we juggle limited resources in a... Read More
Small Business |