Empowering Your Business Through Expert Franchise Development
Payment of a Fee: Fee’s represent any and all payments made by a franchisee to the franchisor (royalty, training, marketing, equipment, etc.) The FTC Rule set the base payment at $500. However, some states have enacted laws that have payment ranges from $100 to $1000 for the life of the arrangement.
Trademark use: This criteria is satisfied when a good or service that is sold or offered by the “franchisee” is associated with the trademark. The “trademark” does not have to be a registered mark, but it is strongly advised that it is. It could be a trade name or a service mark too.
Control: Exertion of “significant” control over the business, to include providing ongoing assistance or even providing a marketing plan for the sale or distribution of products or services. Basically, a “franchisee’s” reliance on the “franchisor” for business expertise on how to operate the business to reduce risk is considered control.
People desire to be their own boss, and will invest their resources for the rights to be a part of a successful enterprise. Whether you need to quickly expand into new markets to establish market dominance for a new product or a specialized business, or seek to expand by capitalizing on the success of your business model, franchising provides a means to expand your business into new established markets, and share the risk and cost associated with your expansion goals into developing markets. Franchising provides the opportunity to accelerate market penetration.
Interestingly, the term “royalties” is said to have derived, in part, from the term “Royal Tithes”, wherein Englishmen received a percentage of the land fees paid by serfs to nobility. Additionally, individuals paid “royal”ties to lords and king for the rights to operate a business in the kingdom (and for protection).
Throughout history, franchising has promoted economic liberation, promoting opportunity and the “freeing” of commerce. True to its roots, and fostered by humankind’s great entrepreneurial spirit, franchise success stories continue emerging across the globe, and new business concepts dot the landscape of our ever-changing world,
creating generational wealth.
Empowering small business growth through franchising - creating great communities everywhere!
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