[supernova77]

Hi

For those who franchise...

Does anyone charge a fixed daily, weekly or monthly fee instead of a percentage of turnover?

Andy

[Nick Day]

Hello Andy

You have posted a very interesting question. I had many thousands of pounds worth of one to one franchising advice from one of Europe's most highly respected advisers.
I was seriously going to do a whole lot of weekly posts of what Franchising is about and the details of how you go about it. I wasn't sure if the demand was out there. Let me know and I will gladly part with all this advice free of charge.
With regards to your question, the answer would be part of my posts, but remember if you have a franchisee who has a limited threshold you are laughing but how would you feel if a franchisee was paying you a set fee per month and grew to three vans and a hutge turnover?

[supernova77]

Thanks for your replies.

Nick - I would be very interested  in any knowledge / ideas that you have

You could work the fixed fee on a sliding scale... As an example (and this is an example only) the franchisee pays a weekly fee of £50 a week up to a turnover of £500... If it goes over £500 a week say anything between £500 and £750 a week is £75 and so on...you get the concept..?

Thoughts?

Andy

[johnwillan]

Hi Nick

I'd be interested to hear your thoughts on Franchising too.

Hi Andy

I think it depends on what you provide in the franchise, Jim's Mowing use a fixed fee but Franchisee's generate their own work and have limited areas. May I ask why you might be interested in this format?

John

[Nick Day]

I will start within the next few days.
Remember  a fixed price licence operates under the premise that you do not need to check accounts etc.
If you are working under a fixed price fee, their turnover is none of your business, you've sold the area and for five years (assuming it is a five year licence) you have no control.