rapid development of economy, in the development of the industry increasingly mature situation, brand franchising has become a major trend in the development of the industry, quite a lot of venture investors chose to join, compared with the independent business, joined the business in addition to providing the support, also increased in the cost, so the cost of joined the business how much do you know about
franchisees to join the headquarters to join the fee generally include the following categories:
venture capital to join 1 gold
is also known as the initial franchise fee, is to join in when joining to the headquarters of a one-time payment of the fees, trademarks, special technology and other expenses including franchisees have the right to use the headquarters developed, reflecting the benefits of joining with the value of the franchise system. The cost of each headquarters are not the same.
join venture capital 2 margin
as a guarantee to pay the costs and liabilities in the future, but also with the headquarters to the store to provide the advance payment of goods, the number of different companies. The contract is terminated when the refund, the situation is different, depending on the contract between the parties.
join venture capital 3 royalty
is the headquarters of the franchise shop for business guidance and the cost charged by the franchisee to pay on schedule. Calculation method of royalty according to different industries, such as convenience stores for gross margin of 30% – 50%, fast food is generally 5% – 10% of sales, rental rental income 6% – 8%; pub by shop space charge, and fixed fee package etc..
venture capital to join 4 liquidated damages
breach of contract obligations and prohibitions, in accordance with the provisions of the contract to the injured party to pay liquidated damages as compensation.
join venture costs 5 other costs
such as store design and construction fees, training fees, advertising fees, equipment rental fees, financial business expenses, accident insurance, etc..
the above costs can be divided into before the opening of the store to pay the initial fee and the cost of the operation after the opening of the follow-up to join the cost of the two categories. The initial fee includes the cost of recruiting, evaluating, training and searching for the address, and in some cases, it includes a franchise system that is maturing and an increase in goodwill. How to determine the pre joining fee level, some people think that we should as far as possible to reduce the upfront costs in order to join the start-up costs can be reduced to a minimum; others think it should be too high, because the pre charge is headquarters to get close.