Required Costs and Payments
Startup investments required of franchisees can be higher than the amount you’d need to start an independent business, although it varies depending on the company. While you may have the luxury of acting as your own boss, you’re still required to pay a percentage of your sales to the corporation. Because royalties often are given on a percentage basis, the better your business does the more you’ll hand over to the company. Additionally, some companies require franchisees to pay marketing fees for nationwide advertising.