Usually the cost of decoration franchise consists of three parts: brand franchise fee, brand usage fee and brand deposit. The specific cost of each item also needs to be determined based on the city's development scale (such as county-level cities, prefecture-level cities, provincial capital cities) and the popularity of the franchised brand and the brand's market positioning (high-end, mid-to-low-end).
Brand franchise fee: Brand franchise fee is a one-time fee that investors need to pay after signing a franchise contract with the franchise headquarters, usually ranging from 50,000 to 100,000 (one-time). This part of the fee is the basic fee that franchisees should pay for using the headquarters' trademarks and technology. The amount of this fee will vary depending on the brand's popularity and the regulations of the headquarters. Usually, the more mature the company is, the higher the franchise fee will be.
Brand deposit: The deposit is paid to ensure that investors will pay various expenses such as purchase, training, decoration, etc. on time after joining, and to ensure that the debt guarantee can be paid as agreed in the contract. The amount of the deposit usually ranges from 30,000 to 50,000 (one-time). The deposit paid by the investor at the beginning of joining will be returned to the investor upon the natural termination of the contract. The editor of Beijing Decoration Company Deep Space reminds franchisees that if the franchisee terminates the contract on its own due to personal reasons, the security deposit will generally not be refunded. The specific rules vary according to the regulations of the company, and the provisions of the decoration franchise contract should usually prevail.
Brand usage fee: The so-called brand management fee means that after the investor joins the headquarters, the headquarters will provide professional guidance to the franchisee, which requires the franchisee to bear part of the knowledge cost, which is what we usually call the brand Management fee, which usually ranges from RMB 20,000 to RMB 30,000, is a fee that franchisees must pay to the headquarters every year. The collection of brand management fees is determined by the headquarters based on different industries, brands and market conditions. Some decoration franchise fees will also include store decoration, deposits for purchase, personnel training, etc.
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