Is it because the franchise absorbs the costs? Do they still have to pay a "rental" fee to the parent company or is it a one-time cost?
2007-08-07 02:20:17 · 2 answers · asked by Bill Spry 4 in Business & Finance ➔ Corporations
I'm not 100% sure what you mean by "rental" free. Each business oporates differently. One company I know of has just a one time start up fee. Everything involving the business such as billing, cross referencing, everything in accounts receivables department, accounts payable departments, customer service, other services, inventory, product development etc etc etc, they take care of. Then once every year after you have your license renewel fee which is a fraction of the start up cost.
What company are you going to buy into?
2007-08-07 16:52:46 · answer #1 · answered by Anonymous · 0⤊ 0⤋
you get the benefit of a well known name and an existing customer base. the parent company also provides business development opportunities. most comanies make you pay ongoing royalties and a few dont (assuming thats what you meant by rental fee)
2007-08-07 02:30:43 · answer #2 · answered by cashmaker81 6 · 0⤊ 0⤋