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Even with the company offering to cover a portion of franchisee costs, owner-operators can easily spend hundreds of thousands of dollars.
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Further, in an effort to help bridge cash flow constraints caused by weeks or months of waiting for claims to be paid by PhilHealth, BlueStar offers short-term loans to help franchisees cover costs while waiting for their reimbursements.
Review the Franchise Disclosure Document, which contains Dunkin Donuts financial statements, the franchise agreement, franchisee contacts, cost breakdowns, initial franchise fees, royalties and advertising fees.
As it stands, McDonald's franchisees are dealing with additional costs: franchisees pay a royalty fee to McDonald's of about 5%, according to Gordon.
But wages aren't the franchisees' only cost.
Considering the costs, franchisees struggle to make profits and pay their employees more.
Ask other franchisees how their costs compare to the franchisor's estimates.
With all these extra costs, franchisees are more likely to have a smaller profit margin than the corporate store and, thus, less funds to use for a pay hike.
Since then, Quiznos has revamped its procurement to cut raw-materials costs, bolstering franchisees' profits.
The signs will cost each franchisee from $50,000 to more than $150,000, he said.
As a recent franchise owner, Slater-Carter is well positioned to talk about the challenges and the costs that franchisees often face.
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