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| | 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 |
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Franchise Information
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