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Frequently Asked Questions - FAQ
Does a franchisor have the right to require a franchisee to pay him a monthly minimum whilst also receiving a % of the turnover?
Franchisors can certainly require franchisees to pay a minimum monthly fee to cover the costs incurred from providing help, services, etc.
This practice is not particularly wide-spread. However, in certain cases franchisees may not be working well, may lack energy or may be carrying out other business on the side.
Some franchisors require a fixed monthly sum plus a percentage as a means of guaranteeing a minimum income and reducing the level of fees on large turnovers.
Jean Samper, Consultant Filter
