PerfectMatch Franchise Podcast

Episode 20: What Are the Costs and Fees of a Franchise?

Dylan

If you're looking into franchising, I'm sure fees and costs are one of the more important aspects you're looking at. However, it's important to not look at fees as a negative expense. Fees are what keep the brand growing and able to provide more support that aids in your success. For instance, let's say Brand A has a 6% royalty and 2% brand fund, and Brand B has a 7% royalty and a 1% brand fund. While it is true that both brands require an 8% fee, Brand A is allocating more towards a brand-wide marketing fund. Now, that isn't necessarily a good or bad thing, it's just a fact of the matter. What else you get with each brand should also be a major consideration. With that being said, it's important to know how to compare costs and fees between potential brands you're considering.