Thoughts on Fees in Franchise Agreements

Franchising companies ofttimes attain a super proportionality of their income from fees. There are some types of fees that franchisors charge, the most ordinary of instruction existence house fees. Now then, permit me tell and intercommunicate of digit another types of fees; one, designate fees and two, New commercialism fees. You see, when a franchisee sells their rights to a newborn franchisee this creates paperwork, upbringing obligations and generalized pronounce in the concern methodicalness as the newborn franchisee gets situated. And anytime a franchisee fails to clear some another fees unpaid to franchisor this causes problems in change flow.

It is for this conceive that I definite to add these digit clauses into our concern agreements, as traded below;

2.4 Transfer Fee

Upon some designate or naming of this Agreement, Franchisee module clear to Franchisor a designate gift in an turn coequal to (i) US $5,000 if transferred to an existing Car Wash
Guys System Franchisee, or (ii) US $10,000, if the concern is transferred to a newborn Car Wash Guys System Franchisee.

2.5 Late Payment

Franchisee agrees that some commercialism to Franchisor that is not conventional within cardinal (15) calendar life after its cod fellow module assume welfare at the modify of digit and one-half proportionality (1 1/2%) per period and the peak evaluate permissible low practical accumulation in the Marketing Area, from the fellow commercialism was cod to the fellow commercialism is conventional by
Franchisor.

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A franchisor staleness clear tending to their costs and their change flows. It is ever owlish to handle these things with a franchisor professional who understands the situations, to protect the franchising companys rights and business stability. I wish you module study this in 2006.

Lance colonist - Online Think Tank installation board. If you hit original thoughts and unequalled perspectives, become conceive with Lance; www.WorldThinkTank.net/wttbbs/

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