However, when a company operates on an agency model

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It is worth noting that such activities occur on a regular basis. Since partners benefit from such marketing, they have to pay for it partially to compensate for the franchisor's costs - usually the fee is at the level of 1-2% of the partner company's turnover. There are franchises that are ready to not take royalties for several months after signing the contract. It is worth mentioning that the latter is equal to 4-6% of the franchisee company's turnover.


i.e. partners attract consumers, and the main enterprise does further work with them, this linkedin database amount reaches and even exceeds 50%. Lump sum payment amount The lump sum is the cost of the franchise. In some cases it does not exceed several thousand, while in others we are talking about much more serious amounts. The point is that the price is calculated as the brand's cost price plus the franchiser's profit.


If we look into it in more detail, the profit also includes a markup. Whereas the cost price of a franchise consists of a number of bonuses that each partner receives from the brand owner - from a certain brand reputation to the layout of the premises. The volume and quality of such a franchise package directly affects the franchise fee. The lump sum payment may include: trademark, that is, the ability to legally operate under a certain brand; assistance in starting a business; business plan; development of a design project and even selection of the premises for the future office; visit of a franchisor representative to new partners; team training; website/landing page development; formation or transfer of a ready-made marketing strategy; production technology and equipment; access to CRM and ERP systems; standards, instructions in accordance with which personnel will perform their functions.