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Forum Newbie
Group: Forum Members
Last Login: 12/15/2008 1:58:41 PM
Posts: 3,
Visits: 5
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Hello,
We are a new franchisor and are wrestling with the fees we should pay to the brokers to incentivise them to show our concept. Is there an easy answer as to how we present the offering? We have several broker groups interested but we are being told that today a $15,000 commission is a little light.
Our concept is retail in nature has a franchise fee of $30,000 with a total investment between $90,000 and $140,000. Let's just say this has a potential for high volume of sales (new technology, little to no competition) and we offer the brokers $15,000 per deal. Is that reasonable, or should we expect to have to pay higher commissions, royalties, equity, and up-front fees to be included in inventory? If we introduce high we cannot go lower, if we introduce low we may not get deals. I'm not necessarily opposed to going high but we have yet to even try to sell organically. Any advise out there given today's state of the economy? I am told that 1-2 years ago we could just go in at $15,000 and expect results.
Thanks,
Ron
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Forum Newbie
Group: Forum Members
Last Login: 12/15/2008 1:58:41 PM
Posts: 3,
Visits: 5
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| I apologize, I realized that I posted this in the wrong section. A new user error...
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