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Recent Blog Posts

Making Money as a Franchisor: Charging Fees for Services

This blog previously discussed the common ways a franchisor makes money.  As we noted, almost all franchisors charge the following fees: An initial franchise fee; A periodic (weekly or monthly) royalty; A development fee or territory fee; and A periodic advertising fee. We also began discussing less-common ways a franchisor makes money.  These were: Charging… Read More »

Making Money as a Franchisor: Sale of Products and Services to Franchisees

This blog previously discussed the common ways a franchisor makes money.  As we noted, almost all franchisors charge the following fees: An initial franchise fee; A periodic (weekly or monthly) royalty; A development fee or territory fee; and A periodic advertising fee. We also began discussing less-common ways a franchisor makes money.  The first of… Read More »

Making Money as a Franchisor: Lease of a Turnkey Business

This blog previously discussed the common ways a franchisor makes money.  As we noted, almost all franchisors charge the following fees: An initial franchise fee; A periodic (weekly or monthly) royalty; A development fee or territory fee; and A periodic advertising fee. We also began discussing less-common ways a franchisor makes money.  The first of… Read More »

Making Money as a Franchisor: Developing Franchisees’ Sites

This blog previously discussed the common ways a franchisor makes money.  As we noted, almost all franchisors charge the following fees: An initial franchise fee; A periodic (weekly or monthly) royalty; A development fee or territory fee; and A periodic advertising fee. There are, however, other sources of revenue.  Many of these can provide significant… Read More »

Making money as a franchisor: Advertising Fees

This post is the fifth installment of the post dated March 17, 2015, titled “How Do I Make Money as a Franchisor?”  This installment will treat Advertising Fees. Most franchisors charge “Advertising Fees,” or “Ad Fees.”  “Ad Fees” are continuing fees franchisors charge franchisees for advertising and promotional efforts by the franchisor. Ad Fees may be… Read More »

Making money as a franchisor: Development Fees

This post is the fourth installment of the post dated March 17, 2015, titled “How Do I Make Money as a Franchisor?”  This installment will treat Development Fees, sometimes known as “Territory Fees.” Most franchisees want to operate more than one outlet, and most franchisors want them to do so.  There are many advantages to… Read More »

Making money as a franchisor: Royalties

This post is the third installment of the post dated March 17, 2015, titled “How Do I Make Money as a Franchisor?”  This installment will treat Royalties. Most franchisors charge a “Royalty.”  The “Royalty” is the continuing fee franchisors charge franchisees for the license to use the trademarks and the system. Royalties are usually based on… Read More »

Making money as a franchisor: Initial Franchise Fees

This post is the second installment of the post dated March 17, 2015, titled “How Do I Make Money as a Franchisor?” Most franchisors charge an “Initial Franchise Fee.” The “Initial Franchise Fee” is the up-front fee franchisors charge for the purchase of a franchise. Franchisors that I represent have charged Initial Franchise Fees that… Read More »

How do I make money as a franchisor?

I spent several days last fall touring colleges with my daughter.  It was a discouraging experience, for one reason.  Every college had chosen five or ten students to speak with parents.  The colleges selected the students, presumably, to showcase the college’s values and priorities.  Virtually every student proudly announced, “After graduation, I want to work… Read More »

Why would I want to franchise?

There are three main reasons why you would want to franchise your business: Better use of your skills Efficiency Money Better Use of Your Skills Personnel managers have a guideline: “In your first year on a job, you will learn 80% of what you are ever going to learn about that job.” If you have… Read More »