Revised franchise fee structure

The importance of a suitable fee structure

When developing a franchise organization, a fee structure is established. As a franchisor, it is essential to continuously develop the franchise formula to remain competitive. These developments often bring additional costs, which may lead to the need to review the fee structure and, for example, increase the franchise fees.

The challenge of changes

Raising the fee structure is never an easy task and often leads to difficult conversations with franchisees. They need to be convinced of the necessity and benefits of an increase. Therefore, a well-substantiated proposal is essential. The new fee structure must clearly show that the operation of both the franchisor and the franchisees remains balanced and ultimately results in a win-win situation.

The process of adjustment

1. Analysis of the current structure: The current fee structure is thoroughly evaluated and computed in a financial model to determine where adjustments are necessary.
2. Consultation with stakeholders: Key stakeholders are involved in discussing the necessary changes.
3. Development of a proposal: A new fee structure is developed, supported by clear benefits, a detailed explanation, and a breakdown of what this means for the franchisees and you as the franchisor.
4. Communication: The new structure is communicated transparently and clearly to the franchisees, emphasizing the necessity and benefits.
5. Implementation and monitoring: The new structure is implemented, and its effects are closely monitored to ensure a smooth transition and lasting balance.

Reviewing the fee structure in a franchise organization is a complex but sometimes necessary process to remain competitive and financially healthy. With the right guidance and a well-substantiated proposal, franchisors and franchisees can continue working together towards a sustainable and successful future. We are ready to support and guide this process towards an optimal result.