 |  | FranchiseKey International – Over 8,000 Franchise and |
Franchise News - Article
06.08.2009
Should the entry fees be re-paid in order to renew the contract?
First of all, we should make it clear that in Europe it is legal but rare, because it is often the source of disputation and trials at the time of renewal.
So as not to pay the entry fees again, franchisees and master-franchisees tend to contest respecting the contract even in trials.
One must not judge upon this criterion only, but should consider the total cost of the franchise: royalties, potential margins on purchases and on services rendered by the franchisor.
In case of concept renovation, then new entry fees (maybe reduced) can be justified. It can also be justified if monthly royalties are small, etc…
In sum, one should not generalize and cases should be considered separately.
Jean Samper
Consultant AC Franchise
Membre of « collège des experts de
la fff » and of « IFCN »
Filter
