franchisee fee payment options

Many folks that have been laid off from their jobs would like to own a business of their own and they are quite tired of corporate America laying them off or letting them go every time their stock price drops a little bit or there is an economic hiccup in the business cycle. While it is true that this last economic crisis was one that turned global, folks would still like to control their destiny and not have to be worried about losing their jobs, their homes, their families, or their sanity.

One option has always been to have a piece of the American dream by owning their own business. Of course, if you’ve always worked in corporate America you may not have the skills needed to run a business or the entrepreneurial savvy to do it all by yourself.

Perhaps this is why the franchising industry often uses the slogan; “You Are in Business for Yourself but Not by Yourself.” Still, during tight credit markets getting financed to buy a franchise may not be as easy as it once was, even though the franchise or has long-term and long-standing relationships with financial institutions, leasing companies and banks.

Franchisors are all scrambling to find ways to get their franchisee candidates financed and they have not given up. Some have come up with a rather interesting set of solutions. For instance, here is one option I recently heard about from a Major Franchisor:

$20,000 franchise fee and a 6% royalty; or
$40,000 franchise fee and a 4% royalty.

Indeed, this scheme, well it’s very similar to buying down points on a mortgage, so it’s been proven to work, as homebuyers seem to like that option often enough and it provides more choice and helps them with their budgeting and financial situation.

There are many franchisors that are starting to do this now and it makes sense and it provides more possibilities for their franchise buyers, who may not be able to afford large franchise fees at a time when they were worried about paying their bills, and their mortgages, or losing their jobs. Please consider all this.

Lance Winslow is a retired franchisor – Lance Winslow’s Bio [http://washguy.com/news.shtml]. Lance Winslow is formerly the CEO of WashGuys family of franchises for instance one of Lance Winslow’s favorite companies on the team;

Many folks that have been laid off from their jobs would like to own a business of their own and they are quite tired of corporate America laying them off or letting them go every time their stock price drops a little bit or there is an economic hiccup in the business cycle. While it is true that this last economic crisis was one that turned global, folks would still like to control their destiny and not have to be worried about losing their jobs, their homes, their families, or their sanity.

One option has always been to have a piece of the American dream by owning their own business. Of course, if you’ve always worked in corporate America you may not have the skills needed to run a business or the entrepreneurial savvy to do it all by yourself.

Perhaps this is why the franchising industry often uses the slogan; “You Are in Business for Yourself but Not by Yourself.” Still, during tight credit markets getting financed to buy a franchise may not be as easy as it once was, even though the franchise or has long-term and long-standing relationships with financial institutions, leasing companies and banks.

Franchisors are all scrambling to find ways to get their franchisee candidates financed and they have not given up. Some have come up with a rather interesting set of solutions. For instance, here is one option I recently heard about from a Major Franchisor:

$20,000 franchise fee and a 6% royalty; or
$40,000 franchise fee and a 4% royalty.

Indeed, this scheme, well it’s very similar to buying down points on a mortgage, so it’s been proven to work, as homebuyers seem to like that option often enough and it provides more choice and helps them with their budgeting and financial situation.

There are many franchisors that are starting to do this now and it makes sense and it provides more possibilities for their franchise buyers, who may not be able to afford large franchise fees at a time when they were worried about paying their bills, and their mortgages, or losing their jobs. Please consider all this.

 

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