How to buy an expensive franchise

It is not easy, but not impossible. There is a difference between the cost of entry into the network and operating cost. Input costs in the network include the right of entry and other expenses specific brands: store planning, specific materials, decorations, etc. training. Operating costs include fees and some expenses that are required by each network: continuous training, changes in concept, using the best software, etc.

Some of these expenses are necessary for anyone wishing to enter the same market. To know the exact cost of the franchise must therefore calculate the difference between these costs and those imposed by the franchisor. The criteria for choosing the right entry by franchisors.

Some franchisors to accurately calculate time to each new franchisee. Others choose it according to what I feel, by intuition, that the interest rates charged by other franchise in the same sector. There are franchisors who shared input costs right: the right to trade, training and materials (trade mark, information systems, the features).

This formula provides an opportunity to compare these components with equivalent services and materials on the market. It is also good to know that 10% – 30% of right of entry to arrive at a foreign firm which aims to promote the franchise network.

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