Why Should Investment Be Paid?

China Business Forum News: the amount of fee that a franchisee needs to pay is mainly determined by how the franchisor makes his licence.

Why do I have to pay the franchise?

1, in the process of establishing chain stores, we should use a unified marking system, that is, trade names and so on. The ownership of the trade name is all the franchisee, and the recipient must pay a certain fee.

2, in the operation of chain stores, franchisees can be brought to maturity through the process of operation, such as shop management manuals, training manuals, shop manuals and so on.

3, in the operation of chain stores, franchisees should provide a large number of services to the franchisee, such as training, data statistics and analysis, and planning a unified promotional campaign.

4, franchisees should conduct unified publicity and public relations on the whole chain store system.

Approval method of franchise fee

1. Approve according to the contents of the concession.

China business opportunities forum news: the amount of fees that a franchisee needs to pay is mainly determined by how the franchisor develops his licensing content and how much money he has to pay for it.

1, franchisees provide a series of guidance and services, including the establishment, opening, training, operation, logistics, publicity, etc.

2, limited to certain specific industries or objects, franchisees may also provide the franchisees with well-equipped business premises, complete and comprehensive training services, that is, the "turn key project" frequently mentioned.

The franchisee has to pay more to the franchisee than the first one.

The equipment and other hardware are usually "reimbursed", not in the name of franchise fees.

Generally speaking, the cost of franchise generally accounts for 5-10%. of all investments that are permitted to join and operate. For example, if the cost of opening a franchised store is around 200 thousand yuan, the royalty rate will be between 1-2 yuan.

Of course, for small and cheaper concession portfolios, the cost may be higher than that of 5-10%..

Two, according to the time to check.

1, the first concession fee is the one-time fee charged by the franchisee to grant the franchisee to the franchisee, which includes the fees paid by the franchisee, the franchisee, the proprietary technology and so on.

2, the intermediate franchise fee {also known as royalty fee}: in the course of operation, the franchisee pays a royalty to the franchisee on a regular basis at a certain proportion of the turnover.

Usually in some industries, such as catering and other industries.

In the course of operation, we should choose the way to pay the franchise fee according to the characteristics of different industries, the financial strength of the franchisee and the comprehensive strength of the franchisee.

When the franchisee is not strong enough or the chain network is just beginning to build, the franchisee will waiver or collect part of the fees in the following circumstances:

1, within a certain period of time to join:

2, develop a certain number of franchisees before joining.

It should be explained that we should avoid confusing the margin, other expenses and franchise fees.