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
no-contract cleaning service Mundelein ..The story is told of a tiger chasing some goats... Read More
It's obvious when a small business has accepted the fact... Read More
When is it a good thing to say no to... Read More
I love work, I can watch it all day.I am... Read More
Last summer the FTC put forth a report and then... Read More
IntroductionIt is widely recognised that Email and the Internet is... Read More
What does buying a fat pig have to do with... Read More
Many experienced auto detailing professionals who have started out using... Read More
To maximum potential profits and dollars in a mobile washing... Read More
You are selling your small business (business value under $1... Read More
Starting a business? For many people, the bravery to venture... Read More
Starting and managing a small business is no fun chore,... Read More
Where do you find the right people for a business... Read More
KEEPING INTEREST HIGH: Supervision is key to the success of... Read More
Once you've decided to incorporate your small business the next... Read More
Do you own a franchised business? Over 400,000 franchised businesses... Read More
If you are the boss and you think your job... Read More
1. Resolve to build a consistent network system.Since referrals are... Read More
Imagine that you have operated a successful franchise business for... Read More
Aircraft Interiors of personal and corporate jets have hundreds of... Read More
Support is critical for your small business survival. You may... Read More
Mr/Ms, 'not me' is often on holidays in your business.... Read More
Send handwritten notes. That applies whether you're a guy or... Read More
I frequently give presentations at small business gatherings, providing me... Read More
All franchises must meet the legal definition of a franchise... Read More
maid service near Glenview ..Last summer the FTC put forth a report and then... Read More
Q: I will be retiring this year at age 60... Read More
Owning a business is a challenging endeavor. If you're like... Read More
To have one of the popular in home daycare businesses.... Read More
I meet and talk to hundreds and hundreds of business... Read More
We are noticing an increase in the length of time... Read More
Shipping materials can be expensive! Even the styrofoam "peanuts" can... Read More
Is this you?You dreamed of owning your own business, doing... Read More
Articles abound advising the business community how to properly screen... Read More
Sexual Harassment is a disturbing part of employment life in... Read More
It appears the mini-blimp indoor theme and concept is making... Read More
We all know that competition is an ugly word but... Read More
Why are we over regulation the franchising industry, what purpose... Read More
Some of the very qualities that attract people to the... Read More
Get maximum results with minimum effort. Sounds great doesn't it?... Read More
Franchising has made the world look really small. The well... Read More
In general, all of us know how to accomplish the... Read More
If you run a pressure washer business you need complete... Read More
To get approval for your small business loan application, you... Read More
Setting priorities in your business? Your first job is to... Read More
So often small service businesses fail to exploit niches, which... Read More
Announcements can be handed out as a business cardAnnouncements can... Read More
Entrepreneurs are hardy stock. But sometimes hardiness can get you... Read More
As you may know, there are many ways to incorporate... Read More
You bet it's worth it. Publicity via news releases, along... Read More
Small Business |