In this episode of the Franchise My Business podcast, Kevin Oldham discusses how franchise fees and royalty payments work. Franchise fees cover the franchisee’s onboarding into your business.
As your brand grows, the initial franchise fee (IFF) becomes more and more profitable as well. Depending on your business, what IFF covers can vary quite a bit, but at the end of the day, it is YOU who determines how much your IFF will be.
HIGHLIGHT QUOTES
Aside from IFF, rebates are a source of income – Kevin: “If you think about the things that your franchisees need to operate their business, let’s use the smoothie shop again, we’ve got machinery, we have food products.”
“We have cups, straws, like paper products and things like that, and there are opportunities that if you wanted to go and talk to those suppliers, that you can structure rebates on things that your franchisees are required to purchase.”
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