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The Complete Guide to Franchises

AllBusiness.com

These costs can vary widely depending on the franchise type—from just a few thousand dollars for a home-based business to over $1 million for a full-service restaurant. Royalty Fees: Most franchisors charge either monthly royalties as a percentage of gross sales, typically between 4% and 8%, or a set monthly fee.

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How to Choose the Right Franchise Business for Your Lifestyle

Franchise To World

. · Profitability and Return on Investment (ROI): Analyze the financials of the franchise. Look for franchises that offer a clear picture of the costs involved and potential returns. Franchise disclosure documents (FDD) are a valuable resource for this information.