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Initial Investment and Royalty fees

  1. Minimum turn-key investment, including franchisee fee: $65,000
  2. Liquid Capital: $45,000 minimum
  3. Net Worth: $100,000 minimum

What is a Royalty Fee and why do I pay it?

The recurrent royalty fees are 8% of gross monthly sales which are in essence contributions to the entire organization. The payments are used to maintain the system and ensure that all avenues flow smoothly between the franchisor and franchisee. Royalty payments are typically paid to the franchisor to stay current on technological advances as well as to enable the creation and marketing of fresh products and services. Also, these payments are collected to pay expenses that are incurred at the franchisor's headquarters such as rent, utilities, and employee compensation. As more creative advertising is set forth, the organization's brands become increasingly identifiable. Therefore higher business and profits are realized for both the franchisee and the franchisor. Although the franchisee may not understand the need for the royalty fees at first, it becomes more evident as time goes on that the payments create a win-win situation for both sides.

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