Depends on the business and the potential. Normally these fees are in excess of a base contact amount and then they have tiered levels in them.
For an example we have one where a company came in and ran a business for $500K. Then if they increased the business profit by 1 mil net then they would get 60% of the profit over 1 mil. If they did not increase profit by one mil then they didn't get more than the base.
Again this will be based on what you are selling. You can't pay that kind of base if you are just selling something like soft drinks and ice cream. Check with someone else in that line of business in another state and see what they do. You are no compitetion with them and they may talk to you.
Good luck.
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Submitted 558 days ago...
What are typical Management Fees?
I have the option of entering into a franchise agreement for a retail outlet and would like to know whether there are any "typical" percentage fees? i.e. is paying 25% of profit too high? If so what percentage would I expect to pay? Is there normally a sliding scale were I pay a higher percentage the more profitable the business becomes?
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Submitted 557 days ago...
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What are typical Management Fees?
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