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Franchise fees

Discussion in 'Business Operations' started by DanaMac, Dec 1, 2003.

  1. DanaMac

    DanaMac LawnSite Fanatic
    Posts: 13,156

    I'm curious as to what some of the typical franchise fees are. My wife is looking into a franchise in another industry. Is there a standard formula for the fees? Is it usually an up front cost and then a percentage on revenues?

    The biz she wants to buy into isn't offering franchises, but she would like to add another local shop and run it. The name and reputation are great, and she is also friends with the biz owner.

    Any advice is welcome.
  2. BravesFan

    BravesFan LawnSite Member
    Posts: 233

    Franchise fees will vary. Some are next to nothing while others are hundreds of thousands.

    It's funny...I'll look through franchise mags. and see a 'Dave's Lawn Care" franchise with a $10K franchise fee. Who in the world would buy into something like this?

    Unless the franchise has a patented system, immediate name recognition(i.e. Subway, McDonalds, etc.), or have a unique training program that is out of this world...I wouldn't even consider paying for a franchise.

  3. Groundcover Solutions

    Groundcover Solutions LawnSite Bronze Member
    Posts: 1,254

    I agree with dennis, franchise fees will vary depending on what franchise you buy into. Some can be up front with with a % of revenu and others would be just an up front cost with no %, while others could be up front with a set fee per year. If the company you are looking to franchise with dose not offer franchises then you should consider getting an atturny to work out the details of a franchies aggreement or even going a different rout altogether. There are many options to doing something of this sort and you should realy get an attorny involved in the proccess.
  4. Team Gopher

    Team Gopher LawnSite Platinum Member
    from -
    Posts: 4,041

    Hi DanaMac,

    You can find a lot of information on this by searching the web.

    Here is a good place to start your research.

  5. Groundcover Solutions

    Groundcover Solutions LawnSite Bronze Member
    Posts: 1,254

    Gopher that is a great site! Good info!

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