Franchising and agency are roughly the same, but there are also differences. Franchisees are provided with technical support from the headquarters, such as store decoration, employee training, etc., but the cost is shared between you and the headquarters. The specific proportion is up to you to discuss. The headquarters will also provide you with local advertising and other publicity support. With corresponding support and so on, this is what a franchisee is. The agency industry is the same, but the difference is that if you become a regional agent, if a merchant in this area is interested in this market, he must find you to complete the investment in this brand, which means he has to pay you a part of the franchise fee. That's probably it.

How to determine the appropriate franchise fee is a very critical issue for the headquarters, which directly affects the smooth development of the franchise business. Because investors are usually very sensitive in terms of fees. If the fees are set too high, investors will not be able to obtain the expected profits and will naturally not be interested in the business. Even if they join, they will quit soon; if the fees are set too low, investors will not be interested in the business. The headquarters' income will be damaged, and it will not even be able to cover the cost of the services provided, which will outweigh the gain. In any case, the headquarters should come up with a reasonable charging plan as soon as possible, determine the franchise fee level and charging method, so as to formulate a reasonable budget, make up for its management costs, and obtain sufficient profits. The franchise fees paid by franchisees to the headquarters generally include the following categories:

1. Franchise fee.

Also known as the initial franchise fee, it is a one-time fee paid by the franchisee to the headquarters when joining. It includes the franchisee's right to use the trademarks, special technologies developed by the headquarters, etc., which reflects the franchisee's The value of the various benefits gained by joining the franchise system. This fee is different for each headquarters,

2. Security deposit.

As a guarantee for future payment of various expenses and debts, it also acts as a prepayment for the goods provided by the headquarters to the franchise stores. The quantity varies from company to company, and whether it will be refunded when the contract is terminated also varies. Same, subject to the contract between the parties.

3. Royalty.

It is a fee charged by the headquarters for providing business guidance to franchise stores, and is paid by the franchise stores on schedule. The calculation method of royalties varies according to different industries. Bistros charge according to the store area, and there are also fixed fees, etc.

4． Liquidated damages.

If the obligations and prohibitions stipulated in the contract are violated, liquidated damages shall be paid to the injured party as compensation in accordance with the provisions of the contract.

5. Other fees.