Paying Royalties might be the best money spent in your Business
Paying Royalties might be the best money spent in your Business
I therefore decided to further address the issue of royalties, specifically, so that people who are looking to start a new business or buying an existing business understand the royalties’ structure and the value you get for your money.
Every Franchise has some type of Royalty structure, the most common being a percentage of Gross Sales which a business makes. There are Franchises that charge a flat fee for royalties and some require their Franchisees to buy product from them at a mark up. Regardless of what type of Royalty structure a Franchise has, Royalties is how the Franchisor makes their money, thus, the more money their Franchisees make the more money the Franchisor makes.
Let's review this again, the more money Franchisee makes, the more money Franchisor makes. It is in the best interest of every Franchise to make sure that their Franchisees are successful, not just because of the money, but also because that success will translate to growth, financial well being and stability of the Franchisor.
As the Franchise grows, so does it's name and brand and that is always beneficial to it's Franchisees. Royalties, are not just free money which Franchise collects. Franchisors are experts in their fields and in return for these Royalties, they provide services to their Franchisees such as initial and on going training and support, marketing ideas, help with hiring and training of employees, as well as negotiate prices with landlords, suppliers and contractors. Their goal is to help you succeed; one of the biggest reasons why the Franchise Industry has enjoyed a 95% success rate. You are in business for yourself but not by yourself.
Royalties are an investment in your business and Franchisees do get a return on that investment, so don't let royalties scare you away from Franchises, just think about the value and benefits they provide and I think you will find that over time Royalties are the best money you can spend in your business.
Paying Royalties might be the best money spent in your Business - To learn more about this author, visit David Dolitsky's Website.
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I recently had a conversation with a Franchisee who owns several Hair Cutting Franchise locations. One of the things he emphasized on is that royalties are the best money he spent in his business. He specifically said that every time he needs help or a question answered, all he has to do is pick up the phone, and call the Franchise and he receives an instant answer. He attributes that to his success.
I therefore decided to further address the issue of royalties, specifically, so that people who are looking to start a new business or buying an existing business understand the royalties’ structure and the value you get for your money.
Every Franchise has some type of Royalty structure, the most common being a percentage of Gross Sales which a business makes. There are Franchises that charge a flat fee for royalties and some require their Franchisees to buy product from them at a mark up. Regardless of what type of Royalty structure a Franchise has, Royalties is how the Franchisor makes their money, thus, the more money their Franchisees make the more money the Franchisor makes.
Let's review this again, the more money Franchisee makes, the more money Franchisor makes. It is in the best interest of every Franchise to make sure that their Franchisees are successful, not just because of the money, but also because that success will translate to growth, financial well being and stability of the Franchisor.
As the Franchise grows, so does it's name and brand and that is always beneficial to it's Franchisees. Royalties, are not just free money which Franchise collects. Franchisors are experts in their fields and in return for these Royalties, they provide services to their Franchisees such as initial and on going training and support, marketing ideas, help with hiring and training of employees, as well as negotiate prices with landlords, suppliers and contractors. Their goal is to help you succeed; one of the biggest reasons why the Franchise Industry has enjoyed a 95% success rate. You are in business for yourself but not by yourself.
Royalties are an investment in your business and Franchisees do get a return on that investment, so don't let royalties scare you away from Franchises, just think about the value and benefits they provide and I think you will find that over time Royalties are the best money you can spend in your business.
Paying Royalties might be the best money spent in your Business - To learn more about this author, visit David Dolitsky's Website.
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David AchesonDavid Acheson is the founder of DCJA Consultancy. DCJA Consultancy is a management consultancy business specialising in B2B sales consultancy. They offer bespoke and packaged sales consultancy including Sales Optimisation Review, Interim Sales Management, Sales & Marketing Review, 1:1 Sales & Management Staff Analysis, Management Training, Solution Sales Training, Creation of New Pay Plan, KPI's, run Customer Feedback Campaigns, assist with Recruitment, Coaching, Appraisals and set up Strategic Marketing Campaigns. David spent his early career in accountancy and then moved into sales in 1982, working in Office Equipment, IT, Advertising, Training, Outsourcing and Consultancy. He has held many Senior Positions in SMBs and Global Organisations including Head of Sales Operations & Head of Business Development. His knowledge, skills and great experience of the Sales Industry has led to David making keynote speeches and running educational sessions to key businesses through organisations including The Chamber of Commerce and Business Link. - Visit David Acheson's Website |
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John BrennanJohn Brennan Ed.D. Dr. Brennan is President of Interpersonal Development, LLC, a training and development firm. Interpersonal Development has provided sales training and coaching to more than 3,000 sales reps from over 100 companies. A native of Australia, Dr. Brennan received his doctorate from the University of Rochester. His dissertation researched the effectiveness of Behavioral Modeling Technology in training people in interpersonal skills. While he has spent most of his career designing or delivering training, he was also a Vice-President of Sales of a training and development franchise with operations in 25 markets. Dr. Brennan has designed and delivered sales training in North America, Asia, Europe, Australia and the Middle East. He has been a guest speaker at numerous national and regional professional conferences. When Microsoft wanted Best Practices articles on sales for their web site, they called Dr. Brennan. The results are at http://office.microsoft.com/en-us/FX011387391033.aspx His firm’s clients have included Volvo, The Prudential, Merrill Lynch, Eastman Kodak, Gannett, Equifax Europe, the Economist Group and countless small businesses. - Visit John Brennan's Website |
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David BarrDavid Barr is the President of Venture Opportunities, Inc. David has been a professional business broker/intermediary since 1980 focusing on General Business Brokerage and Mergers and Acquisitions representing client transaction value from $400,000 to $20,000,000. Mr. Barr has handled the sale of over four hundred and fifty companies. David earned a university degree from the State University of New York majoring in economics and business. David holds the Mergers and Acquisition Master Intermediary and the Certified Business Intermediary designations from the International Business Brokers Association. He is also a Senior Business Analyst and a Texas licensed Real Estate Agent. For more information about David and Venture Opportunities, visit www.bizdealmaker.com. - Visit David Barr's Website |
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Anne BarrAnne Barr has over 26 years experience in sales and marketing, six years as a franchisee. She has assisted over 367 business owners and purchasers to achieve their goals in career change, transition and exit strategy. She holds the designation of Certified Franchise Executive from the International Franchise Association, Certified Business Intermediary from the International Business Brokers Association and Board Certified Broker from the Texas Association of Business Brokers. Anne is active in professional organizations, networking groups and volunteers for non-profit entities. As owner/operator of four successful businesses, Anne has proven people skills and enjoys helping clients find the right "fit" in business ownership. Visit www.FranchiseOpportunitySpecialist.com for more information about me and my company. - Visit Anne Barr's Website |
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Casey GollanCasey Gollan, Business Coaching & Mentoring Programs. Add $1 Million to $10 Million in the next 1 to 3 years. Since 1996 Casey has to added hundreds of millions of dollars to businesses. Watch a free video see client results Business Coaching website. - Visit Casey Gollan's Website |
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Kim CastleWith nearly two decades in the advertising and design business, with clients like Domino's Pizza, General Motors, Direct TV, Pedigree, Wolfgang Puck, Higher Octave Music, Hollywood Celebrity Products, Disney, and Paramount, as well as thousands of entrepreneurs around the world define, structure, communicate, and position their business for greater profits, BrandU(R) co-creators Kim Castle and W. Vito Montone discovered that entrepreneurs could experience the same power that big brands command for a fraction of the cost with the world's only process-based results-drive Integral approach to business creation. BrandU(R) is helping entrepreneurs grow with the power of extreme clarity from idea...to brand...to market(TM) and helping one million entrepreneurs become successful and whole so that they can make a difference in the world. Are you one of them? If you want to experience clarity all the way to the bank(TM), get started now at http://www.brandu.com. - Visit Kim Castle's Website |
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Jeff FosterWebBizIdeas.com is a Minneapolis website design company founded to help people start an internet business by providing them with website, business, and internet resources that help foster the growth of successful online businesses and develop innovative Internet business ideas. We specialize in internet consulting & internet marketing. - Visit Jeff Foster's Website |
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Leanne Hoagland-SmithAre your sales where you want them to be? Will you be one of the few who achieves sales or business success or one of the many who have failed to change? Are you tired of being told you are like everyone else? Then you may find my first book on sales of interest. Be the Red Jacket in the Sea of Gray Suits, The Keys to Unlocking Sales available at Amazon or at http://www.processspecialist.com/red-jacket.htm. This book is a reflection of my no-nonsense approach to improving sales to overall business results. If you are truly committed to making sustainable changes, then I can help you secure a positive return on your investment because I focus on executable solutions not telling you the problems you already know you have. From training to corporate (group) coaching to executive one on one coaching, my approach is to assess, create awareness, build a goal driven action plan and then execute. The bottom line question is "Not do you or your employees know it, but do you or they want to do it?" Please call for a free strategy session at 219.759.5601. - Visit Leanne Hoagland-Smith's Website |
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