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Understanding the Financial Side of Franchising: What You Need to Know

The Franchise Consulting Company

This fee grants you the right to use the franchisor’s brand, trademarks, and proprietary systems. Franchise fees can range from a few thousand dollars to over $50,000, depending on the franchise brand and the size of the operation. Common Financing Options for Franchisees: SBA Loans: The U.S.

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The Complete Guide to Franchises

AllBusiness.com

Royalty Fees: Most franchisors charge either monthly royalties as a percentage of gross sales, typically between 4% and 8%, or a set monthly fee. These fees fund continued access to systems, support, and brand resources. The SBA Franchise Directory lists eligible brands.

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The Top Mistakes First-Time Franchisees Make and How to Avoid Them

The Franchise Consulting Company

How to Avoid This Mistake: Understand the Full Investment: When reviewing the FDD, pay attention to the full breakdown of the initial investment, including real estate, equipment, inventory, marketing, and training costs.