Small Business for Dummies. Veechi Curtis

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do marketing levies work? Almost two-thirds of franchisors charge ongoing marketing levies. The Franchising Code of Conduct requires that these levies are kept in a separate account and that franchisors provide audited statements to franchisees as to how this money is spent.

       What other ongoing fees should you expect? Many franchisors charge ongoing fees for IT services, and some franchisors even charge ongoing fees for training. You need to factor any ongoing fees into your business plan and profitability models.

       What about early termination fees? If things go belly-up, what are the consequences?

      

The franchisor has to supply you with a full disclosure document, a copy of the Franchising Code of Conduct and a copy of the final franchise agreement at least 14 days before you make any payment that isn’t refundable.

      FIGURE 3-2: Your total start-up costs involve much more than the initial purchase price of the franchise.

Part 2

      Finding Your Entrepreneurial Spirit

IN THIS PART …

      Build a business that can stand on its own two feet.

      Understand your business environment and where the risks and opportunities lie.

      Maximise your chances of success with a proper business plan.

      Pick a legal structure, find out about trademarks, and learn about contracts.

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