The franchise business will contact you by means of email and/ or telephone only to the email address and phone number you have provided.
By submitting the enquiry form you are consenting to send your personal information to the selected franchise business.
You also agree to receive further newsletter email marketing from What Franchise.
Can I pay the franchise fee in instalments?
You can pay the franchise fee in whatever way is set out in the franchise agreement, and the franchise agreement could (although it would be unusual) envisage there will be instalment payments. The reason that this is unusual is two fold. The first is that almost always after execution of the franchise agreement the franchisor provides initial training and a copy of the franchisor’s manual. Both are the ‘crown jewels’ in terms of the franchisor’s know how and expertise. In such circumstances franchisors are understandably nervous about providing this information to a prospective franchisee who has not paid in full. The second reason why instalment payments are unusual is that franchisors normally establish good relationships with the franchise units of the banks, which are willing to provide finance to prospective franchisees of brands with which they are comfortable. In such circumstances a franchisee should find it straightforward to borrow sufficient funds to pay the full amount of the initial fee. If that is not the case, then the franchisor may have question marks over the franchisee’s creditworthiness or ability to fund the business. Having said all of that, a small number of franchisors do support those incoming franchisees who they believe will be successful, even if they do not have sufficient funds. The support takes the form of either a loan or the payment of the initial fee in instalments or a reduced management fee in the early days of the franchise.
You might also be interested in
Answered by Phil Archer
Phil Archer writes: The Bounce Back and CIBILs loans brought in last spring originally replaced the Enterprise... read more
Answered by John Pratt
John Pratt writes: First, you have to work out who is responsible for the poor performance because... read more
Answered by Louise Harris
Louise Harris writes: In respect of renewal fees, every franchise is different. Prospective franchisees are guided to... read more
Answered by Alan Wilkinson
Alan Wilkinson writes: An experienced franchisor will know what works and what doesn’t work when marketing its... read more
Exciting Franchise Opportunities
Companies to Consider
Footlights Theatre School &...
Turnover of around £200,000 with net profits between £70,0000 - £80,000
Stagecoach Performing Arts
Up to £230,000
14-18% net profit
Get expert franchising news delivered straight to your inbox
Franchise news, advice and new opportunities delivered weekly.
Must Read Articles
Added 2 years ago | 2 min read
Added one hour ago | 2 min read
Added one day ago | 2 min read
Find your next business opportunity
Search 100s of UK franchises and become your own boss today.
What Franchise Newsletter
Keep up to date with all the industry news