Mcdonalds Polishing the Golden Arches - amazonia.fiocruz.br

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Definition: The initial fee paid to a franchisor to join their system. What you need to know: Found in Item 5 of the FDD, this may be a flat fee, or may vary based on territory size, experience, or other factors. The franchise fee is an up-front one-time cost that a new franchisee pays to the franchisor. This fee is usually due at the signing of the franchise agreement and covers the right to use the franchisor's trademarks, name, and related business systems.

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Definition: The total amount necessary to begin operation of the franchise. What you need to know: The initial investment includes the franchise fee, along with other startup expenses such as real estate, equipment, supplies, business licenses, and working capital. This is outlined in a chart in Item 7 of the FDD, showing a range of possible costs from low to high. Definition: The minimum liquid capital you must have available in order to qualify to become a franchisee of this company. Definition: A ongoing fee paid to the franchisor on a regular basis.

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What you need to know: Most franchisors require franchisees to pay an ongoing royalty fee, which is detailed Mcdonalds Polishing the Golden Arches Item 6 of the FDD. This fee is typically a percentage of weekly or monthly gross sales, but may also be a flat weekly, monthly, or annual fee. Definition: An going fee paid to the franchisor on a regular basis to support advertising or marketing efforts. What you need to know: This may also be called advertising fee, marketing fee, brand fund fee, and more, but the basic purpose is the same-- to support promotion of the brand systemwide.

As with the royalty fee, it is detailed in Item 6 of the FDD, and can be a percentage of weekly or monthly gross sales or a weekly, monthly, or annual fee. Definition: The Classism Concept of time your franchise agreement will last. What you need to know: Franchise terms are typically anywhere Mcdonalds Polishing the Golden Arches 5 to 20 years in length, but are sometimes instead dependent on factors such as the term of your lease.]