When you love what you do, you don’t mind working hard for success. If you own your own business, your earnings should track in direct proportion to the effort you put in. In the world of franchise business ownership, it’s especially important to understand the fee structure of your franchise agreement so that your extra efforts don’t go into the franchisor’s pocket instead of your own.
Not all franchise opportunities are created equal, and undisclosed or variable fees can cut into your profit. With the Home Franchise Concepts (HFC) franchise brands, the flat royalty fee structure ensures that you will be able to keep more of what you make. Fee structures based on sales that are open-ended or fluctuating can eat into your hard-earned profits.
Here are two common franchise royalty fee structures that tie payments to your sales figures and can wreak havoc with your bottom line:
- A fixed percentage of gross sales. This means that the more a franchisee makes, the more they have to pay to the franchisor. Typical ranges for percentage fees are 4.6 to 12.5 percent (International Franchise Association), and may not take into consideration the costs of business; fees are levied on gross sales, not net.
- Increasing or decreasing percentage of sales. Here you have royalty fees changing every month or quarter, based on your level of sales (a sliding percentage scale). Sell a lot, it moves; sell a little, it moves. You may not be able to get a handle on exactly what your projected royalty fees will be, or on how much of your profit is actually yours.
With HFC’s flat royalty fees, you know each month exactly what your costs will be. Even as your sales increase, the fee remains the same, letting your profit margin go up and up.
Royalty fees are a fact of doing business
Royalty fees help to keep the franchisor strong and in a position to provide the support necessary to fuel the entire franchise network, including ongoing services delivered to the franchisees so they can focus on sales. Keeping operations, business technology and vendor alliance relationships in place are all part of the franchisor’s contributions to keep the franchise infrastructure secure. A dynamic franchise business model sets the stage for greater success for the franchisor and each independent franchise business owner, the synergies of each contributing to the growth and stability of the whole franchise system.
Home Franchise Concepts franchise opportunities
HFC is home to three direct-to-consumer franchise brands in the multi-billion dollar home improvement industry: Budget Blinds®, Tailored Living® and Concrete Craft®. With each brand, the business model features flat royalty and National Advertising fees so you ultimately get to keep more of what you earn. There’s no limit to how much you can make since increasing sales will not result in increasing fees.
Can you see yourself joining the HFC family of brands? We pride ourselves on providing products and services to make our customers’ lives easier and more beautiful. And you can have the confidence that what we offer to consumers will never go out of style. We are “in it to win it” over the long haul.
- Budget Blinds – custom window coverings, including blinds, shades, shutters and drapery styles for indoor/outdoor application, residential and commercial, and Smart Home technology—the largest window coverings franchise in North America
- Tailored Living – whole home custom storage solutions, including closets, garages, pantries and more, as well as industrial-strength PremierOne® and PremierTrax garage flooring options for home and business—the largest whole home organization franchise in North America
- Concrete Craft – custom concrete staining, stamping and resurfacing for indoor and outdoor floors and vertical surfaces, including walkways, driveways, decks, patios and fireplaces—the only decorative concrete franchise available
Flat royalty fees are just one element of the franchise ownership package that makes HFC’s business models so attractive. Other exceptional features and benefits include:
- Low initial fees, low overhead
- In-depth training and ongoing support from a dedicated team of Business Coaches
- High-quality products, surpassing the competition in pricing and versatility through strong vendor alliance programs
- Nationally-known brands with good reputations for quality and service
- National Advertising Funds and comprehensive local area marketing tools
- Extensive social media, including Facebook, Pinterest, Twitter and Instagram, as well as TV, radio and print
- Discounts for qualified veterans
Call 1-800-420-5374 today or go online to Home Franchise Concepts and begin to see the real possibilities of becoming a business owner within a franchise network that puts no limits on how much you can make. Our flat royalty fees keep you in control. And if you’re a veteran, HFC offers substantial discounts to assist you with becoming a franchise business owner. Click here to learn more.
Read more about the strength of Home Franchise Concepts and its family of brands: Home Franchise Concepts Eyes Record Growth for its Three Direct-to-Consumer Brands in 2017