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Factors That Franchisors Should Consider When Setting Franchise Fees
When establishing a franchise system one of the primary decisions that you will be required to make relates to setting your initial franchise fee and the royalty rate that will be charged to franchisees on an ongoing basis.In a current article at New York Franchise Law I discuss some of the factors that "start-up" franchisors should consider and discuss when making this critical decision. If you are considering the idea of starting a franchise and are looking for information about the franchising process I definitely recommend the article.
As with many decisions that are involved in the "franchising" process, I believe that the best course of action will be the one that best balances the relationship and rights between franchisor and franchisee.
Labels: "Franchise fee" "Royalty"
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