Income Sources & Wealth Creation
What Is Franchising?
Advantages of Franchising
Income Sources and Wealth Creation
Preliminary Questionnaire
Existing Franchisors
Accredited Investors

Initial Franchise Fees
A one time fee paid by the franchisee to the franchisor to buy into the franchise system.

Royalty Fees
A continuing fee paid by the franchisee to the franchisor as a cost of doing business with the franchisor organization. Royalty fees are usually a percentage of the franchisee's gross sales.

Advertising Fee
A fee paid by the franchisee for corporate advertising expenditures.

Sale of Products to Franchisees
A franchisee may be required to purchase specific products and supplies from the franchisor.

Sale of additional Services
A franchisor may offer other resources to the franchise network such as accounting, bookkeeping, insurance, training, and/or consulting in return for additional fees.

Rental or Sale of Real Estate
The franchisor may own the real estate and lease or sell the property to the franchisee.

Financing Franchisees
A franchisor can set up financing for franchisees to purchase a franchise through third party outside lenders. The franchisor can receive compensation from some of these third party lenders. This-compensation is the difference between the "interest buy rate" (the actual cost of the third party money) and the actual interest loan rate (the interest due and payable by the borrower franchisee).

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