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
best cleaning company Lincolnshire ..Everything starts with a business plan: If you don't have... Read More
What is a guru?A guru is a teacher. A mentor.... Read More
The modern Franchise business model and the much different business... Read More
Do you need grant funding for your nonprofit organization? If... Read More
Your product is dying. With the same inevitability that we... Read More
When a regulator finds a target to go after to... Read More
Under the Securities Act of 1933, any offer to sell... Read More
So you want to start a business but you don't... Read More
Before you read any further in this article, I'd like... Read More
Mobile carwashing is hard work, it is tough on the... Read More
Everyone loves a good story. Whether it's the story of... Read More
Think of your business as a living, breathing, organism. It... Read More
Becoming a contractor or sub-contractor for the U.S. government can... Read More
How do you sponsor an event and get personal introductions... Read More
There's been a recent rise in the number of elderly... Read More
-- Beyond Cold Calling, "Warm" Calling and Sending E-mails --Many... Read More
If you really want to earn more money with your... Read More
Everyday more web based companies enter the business scene. The... Read More
There are only a handful of car wash franchises in... Read More
There is a great deal of abuse going on in... Read More
Providing high quality customer service is a must for any... Read More
Last week we discussed the importance of performing an autopsy... Read More
Here are some of the questions that you need to... Read More
Has this ever happened to you... 'John, you have a... Read More
A Private Investigator is a professional trained in the art... Read More
on demand house cleaning Lake Forest ..The choice of financing is an important determinant of whether... Read More
As you may already know, asphalt paved parking lots do... Read More
The success of your business is critically dependent on how... Read More
Commonly folks have asked me what the technical difference is... Read More
Where do you find the right people for a business... Read More
So you want to get into the auto detailing business... Read More
There are no "rules of thumb" in the pursuit of... Read More
So you think you're not justified in taking time away... Read More
Your business is only as good as the number of... Read More
"Inch by inch, row by row...that's the way my garden... Read More
Your business is making profits, but where is the cash?... Read More
Many businesses offer small business franchise opportunities. There are many... Read More
For many small businesses, the "S" corporation is the business... Read More
One of the simplest ways to expand your marketing efforts... Read More
Aircraft Interiors of personal and corporate jets have hundreds of... Read More
1. Everyone Makes A Difference ? Despite not letting him... Read More
A cherished business doctrine is that growth must be a... Read More
Great question!Freeing your time is an indisputably key element in... Read More
CARD SHARK7 Card Tricks That Improve Your Personal Networking PowerThe... Read More
Every business starts with an idea or a dream. To... Read More
In franchising an individual desirous of their own business will... Read More
Success is the desire of everyman on the face of... Read More
What image do you and your people portray to your... Read More
In the book Women and Small Business author gives all... Read More
How to do itPeople skim through newspapers and magazines and... Read More
Small Business |