Often once franchising companies use strategies of Master franchising to increase their brand-name they will sort a traffic with the Master concession to division the royalty payments. Sometimes it Master franchise will appropriate finished an swathe which merely has franchisees in its zone. This is finished by few franchisors to aid improve the concern of paperwork of uninominal concession outlets in remote regions, which were in the past sold. It as well provides upfront monies from the Master concession to assistance next to the current cash surge of the franchising mechanism.

The payments and payment opening of these monies essential be undeniably definite an addressed in the franchising agreements. Below humour breakthrough a copy of a clause that I inserted into my franchising companies franchise agreements.

2.2.1.1 Royalties From Sale of Additional Franchises

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In anticipation of any grant of The Car Wash Guys or Wash Guys Systems that the
Master Franchise sells, Master Franchise shall pay to Franchisor, a royalty for respectively motor vehicle/unit of $100.00 per period of time. This monarchs fee is due and collectable in engorged on the 17th (17th) calendar day of all calendar time period. These sovereigns payments are to be reply-paid for both automotive vehicle and trailer definite quantity the Franchisees operate. Payments of continued payment fees are not refundable and must be ready-made via wall chain or such other physical science assets transfer code of behaviour as Franchisor may necessitate. The scrap of the crowned heads collected by the Master Franchise shall be retained by the Master Franchise for in operation expenses.

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Careful limelight should be fixed to the clauses in the Master grant agreements to protect the hard cash outpouring of the franchisor into the franchising institution. To see that your corporation is watched over it behooves you to consult next to an knowing concession professional. Consider this in 2006.

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