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Options Franchising Co.
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Notes
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Population of Standard Territory |
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Compare size of population with cost of franchise. |
Guaranteed senior population in territory |
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Compare size of senior population with cost of franchise. |
Cost of Franchise |
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Given that Options standard territory size can approach 400,000 in population which is covered by the $39,000 franchise fee, most other franchisors charge a premium over and above their standard size territory, which is typically much less than 400,000. Check for additional charges for territories with larger population. Ask for a territory of 350,000-400,000 to be able to properly compare fees. |
Royalty fees |
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Check at what bracket the royalty fee starts decreasing. |
Frequency of royalty debits |
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If bi-weekly, calculate the additional royalty fee you will pay in comparison with monthly debits. |
Revenue based on |
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If based on issued but non-paid invoices, calculate additional fee you will be paying on A/Rs and bad debts. |
Marketing fees |
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Frequency of Marketing debits |
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If bi-weekly, calculate the additional royalty fee you will pay in comparison with monthly debits. |
Do you provide any incentives for new franchises? |
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Not all franchisors do. |
If yes, what are these incentives? |
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To assist you with your start-up, ongoing fees (revenue royalty, marketing royalty, and technology fee) are waived for the first two months from the date of completing the 5-day Initial Training. Alternatively the franchisee may choose to be charged royalties for these first two months and receive $3,000 in cash ($1,500/month for these first two months) from the franchisor. |
Technology Fee |
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Check if this fee escalates after year one. |
Face-to-Face Training |
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Total Initial investment |
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Date business started |
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Verify that this date is the actual date when this franchisor, in its present form, started the home care business. |
Number of corporately-owned outlets |
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A good measure to verify if franchisor truly appreciates the challenges of the franchise owner. |