The Entry Fee In Franchising

Franchise Key:

The way you calculate it can vary according to the networks and is not strict, some franchises don’t ask for it, however we cannot call them free…

The entry fee is an initial lump payment that should more or less represent the money spent by the franchisor to welcome his new partner, with or without a benefit for the franchisor, with or without damping of the expenses and of the previous years to create and improve the concept. Hard to figure it also represents the right to use a brand, to benefit from its notoriety. Some brands indeed allow having customers the first opening day what is a real asset. This appreciation is hard to define that is the reason why the entry fee estimation is sometimes arbitrary.

The entry fee can include some services and some supplies like the training, the software or specific programs, the sales materials, advertising on the sales point, etc. It is important that these elements are well detailed. More.