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What is usually included in a basic franchise package?
The products and services provided by the franchisor in return for the upfront fee are likely, in nearly all cases, to cover the rights to use the name and various IT and communication systems, plus an appropriate amount of training for the appropriate staff, either inhouse at the franchisor’s office and/or onsite at the franchisee’s location. Note that the upfront fee is not the same as the franchisee’s total set-up cost, the latter of which includes all the other necessary purchases and expenses of getting an outlet opened. These may include search for, and acquisition of, premises, equipment and vehicles; design and implementation of building works; shop fitting; initial stock purchases; staff recruitment and training; and various other items, the fees for which may go to third parties. Sometimes the franchisor will wrap all the above up into a ‘turnkey package’, whereby all the money goes to him, so the best advice is to get a definitive list of what is and what is not included in the particular system, or systems, with which you are in discussion.
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