Why can’t we just use what the other guys are using?
All too often we hear and see that Franchisee Fees and Marketing Fund Contributions are set up by business owners, lawyers and some accountants that have no real understanding of Franchise Financial Modelling.
It’s all about building a sustainable model that will allow both the Franchisor and Franchisee the appropriate income levels to be successful.
Its easy from the Franchisee’s perspective, its all about profit right? The lower the fees the more profit?
From the Franchisors’ Point of view, they need to be able to fund the running of the system, including any Field Service personnel and staff, whilst having a modest return on their investment.
There is a science to the calculation of any Franchise Fees and Marketing Contributions and BDA are well versed in setting those fees. We also recommend that every 5 years they be fully reviewed to ascertain the best value for the brand.
Let’s grow together Get in touch