The franchisor can certainly require the franchisee to pay him a monthly minimum fee to cover the costs created by his help, his services etc….
This practice is not particularly wide-spread but you must understand that in certain activities the sector granted can be poorly handled by a franchisee who has other businesses or who lacks energy or works in the “black’ economy…
There are also some franchisors who require a fixed monthly sum plus a percentage as a means of ensure a minimum amount of fees and of reducing the level of fees on large turnovers.
SchoolOfMusic.com recruits music teachers and then provides music lessons in students’ homes, teachers’ home studios, and after school programs. Their bizop is a must see!
Does A Franchisor Have The Right To Require The Franchisee To Pay Him
July 8, 2008 by Mark | 1 Comment
In Basic Guidelines, Law & Agreements, Franchisees, Franchises, Franchisors
danakeith on July 8th, 2008 at 11:26 pm
well.. in business, money is the main part.. it’s just depends on their agreements.