If you have ever thought about a franchise business then you would have thought about franchise fees, consciously or unconsciously. And here are all the details of different kind of Franchise Fees charged and how transparent are IIHT Technologies in planning for the same.

3. If you have ever thought about a
franchise business then you
would have thought about
franchise fees, consciously or
unconsciously. But when you
think of franchise fees it’s not the
only thing you are concerned
about, it’s actually, referring to
various cost that you’d incur to
own a franchise. This article
introduces you to various fees
that any franchise charges. It is
helpful to know what they are as
you are more prepared because
you eliminate object of surprise
that could lead you to financial
crisis.

4. This is the fees paid by an individual to franchisor for a purchase of
franchise. Once franchise fee is paid and all agreements are signed, you
become officially a Franchisee/Franchise Owner.
Initial or entry fees could be the full payment of franchise fees or partial
payment that is paid to confirm that the process of franchise purchase is
initiated.

5. This is a continuing fees
charged by every franchisor, it
is typically a fee charged as a
percentage of sales or a fixed
amount
paid
weekly, monthly, yearly or
periodically as agreed upon.
The
fees
is
ongoing
payment, a franchise makes to
the
franchisor,
for
the
continuous
use
of
goodwill,
brand,
ongoing
services provided to franchisee
Very few franchisors fix
advertising and marketing
fees, however marketing fees
are
charged
by
most
franchisors
towards
promotion. Franchisors take
initiative to promote the brand
at regional and national level
to benefit all the franchisees
with such boundaries. Each
franchisee contributes for
same
in
the
form
of
advertising/ marketing fees.

6. Franchises are purchased only
for fixed term of a year, three
years or more, at the end of
which either the franchise
could be sold or rights
renewed, however at a cost.
Such cost is termed franchise
renewal fees.
There are also specific fees
charged by franchises that are
termed one time fees for the
services that are not included
in the agreement as part of
franchising service, as and
when they occur.

7. Franchise exit fees is charged on two occasions a) if the
franchisee decides to exit prior to starting the franchise but after
initiating the purchase process and b) if franchisee decides to exit
before the term for which franchise was purchased.

8. There are many such fees charged by
franchisor which in most cases are
essential for business development and
are explained in detail in the
Franchise Disclosure Document (FDD).
At IIHT Technologies, franchisees are
made well aware of costs prior to transfer
of the rights so as to ensure that a
prospective partner is well aware of their
and franchisor’s financial responsibilities
among others.

9. Corporate Headquarters
#15,Sri Lakshmi Complex, 4th Floor, St. Marks Road, Bangalore - 560 001. India
Tel: 91 80 6160 4545 e-mail: franchise@iihttechnologies.com
web: www.iihttechnologies.com/