Franchise Fees and Royalties: What are you paying for?
If you are looking into buying a franchise, you know that there are many costs involved, but do you know what those costs are and what they actually pay for?
- Franchise Fee
Every franchise has a fee, this is the cost of buying the business. The price really varies among industries and companies, but every franchise has one.
Royalties are on-going costs and also vary among companies. Usually, a royalty is between 2% and 10% of gross sales and may increase or if your gross sales increase.
We know that a franchise is a big investment, but it can do less damage than starting your own business from scratch. These fees can go toward on-going training and support for franchisees, updating technology and computer systems and national/regional marketing efforts. They also pay for the right to use the company’s logo, slogan, etc.…
To learn more about an Executive Care franchise, visit https://franchise.executivehomecare.com/