You are browsing the archives of how to franchise.

The royalty, of course, is the ongoing percentage you receive of the franchisee’s gross sales—before expenses and before profits. It is the payment you get for the continued use of your name and business system. A study made with DePaul University some years back concluded that the average royalty for the 900 franchises we surveyed [...]

These people should have the same desirable qualities of your best manager. Like managers, individual franchise owners should have leadership, sales, and people skills, as well as physical stamina and job experience. Unlike managers, they will put up the capital as well. When the time comes to select franchise applicants, don’t be shy about asking [...]

Franchising Your Business

The establishment of just one company owned unit is often more than the cost of a complete franchise program. After paying the cost of the franchise program, the remaining costs of expansion (as well as most of the risk) are assumed by franchisees. And since franchisees usually pay the franchisor an up-front fee [...]

Franchising is a unique entity. It is regarded as an industry, but is defined as a method of distribution. Most of franchising is associated with food oriented businesses, you know, the ones that line every street corner and you probably bought lunch from the other day. But franchising as permeated all industries today, we now [...]