Wide-Ranging Initial Fees

IFA:

Why is there such a wide range between the minimum and maximum initial fess in some industries? 3 factors play a role:

1. The range of businesses within an industry can be very different. For instance, within the Automotive industry, there are both Car Washes and Gas Stations;

2. Some sectors and some franchise systems may include more expenses than others within their initial fee. Perhaps the initial fee may include the set up of distribution channels, even before the unit is established, or other such expenses;

3. It’s possible to have a very large unit. For instance, for systems that use territory to define their units, they may offer a very large territory option which may have a correspondingly large initial fee to establish.