Franchise Fees; What Do They Really Pay For?
Today, many individual entrepreneurs are finding out that purchasing a franchise is an extremely wise investment. The process is enjoyable, the money is great and the promises are often followed through with by the franchisor. Despite all of this, however, there is one question that investors who have not yet joined will consistently ask – why does it cost so much, and what, exactly, will I be paying for? Indeed, while joining a franchise is an increasingly popular route of investment for the entrepreneur eager to make his or her business a success, there are considerable initial fees which might catch some off guard. Still, the benefits – as well as the chances of success – are much greater than starting up an independent store or restaurant. The higher initial costs that come along with these advantages cover the standard initial franchise fee as well as the royalty fee that continues throughout the duration of the franchisee’s ownership. In order for the investor to find out what is
