How to Analyze Franchise Fees When Investing in a Franchise

As published on Entrepreneur.com, in an excerpt from his book, The Franchisee Handbook: Everything You Need to Know About Buying a Franchise, iFranchise Group CEO Mark Siebert provides guidance to franchise buyers, as they consider and compare various franchise opportunities.

He cautions prospective franchisees against focusing solely on comparing franchise fees or royalties. While the franchise program with the lowest fees might seem to be the most attractive, there are additional criteria that franchise buyers need to consider when making the important decision of which franchise to choose.

Instead, per Siebert, focusing on value, rather than only on cost, is what can lead to franchisees’ success. Future franchisees should take care to evaluate important details, as included in the Franchise Disclosure Document, such advertising fees, suppliers and rebates, and other franchisor-supplied or franchisor-approved goods or services. The key calculation for all franchise buyers will be determining what they must put into the franchise and what they will get in return.

For additional details and recommendations, the full version of Siebert’s book can be purchased at the following sites:  Amazon | Apple Books | IndieBound