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What are the costs of starting a business

people are aware of the need to join the venture to join a certain fee, but what are the cost of joining the venture? How are they based on a receipt? Entrepreneurs need to be clear about this.

join to pay the cost of joining headquarters generally include the following categories:

1 franchise fee.

2 margin.

3 royalty.

is headquarters of the stores operating guidance fee charged by franchisees pay. Calculation method of royalty according to different industries, such as convenience stores for gross margin of 30% – 50%, fast food is generally 5% – 10% of sales, rental rental income 6% – 8%; pub by shop space charge, and fixed fee package etc..

4 penalty.

if you breach of contractual obligations and prohibitions, according to the provisions of the contract to the aggrieved party to pay liquidated damages as compensation.

5 other expenses.

the cost can be paid into stores before the opening of the pre pay cost to join and opened after the operation of the subsequent joining fee of two categories. The initial fee includes the cost of recruiting, evaluating, training and searching for the address, and in some cases, it includes a franchise system that is maturing and an increase in goodwill. How to determine the pre joining fee level, some people think that we should as far as possible to reduce the upfront costs in order to join the start-up costs can be reduced to a minimum; others think it should be too high, because the cost is an important source of headquarters gain, headquarters can immediately obtain large amount of cash income and profits, and solve the "

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