GGB Franchise fee
The one-time upfront payment for rights, training and opening support. Not where a sound franchise model earns.
The franchise fee is the initial payment a franchisee makes for territory rights, training and opening support. In a sound system it roughly covers the franchisor's cost of recruiting and launching that franchisee; the durable earnings come from royalties on trading units. A model priced to profit on fees instead of royalties is selling entry tickets, not building a network.
Illustrative: an AED 100,000 fee against AED 60,000 of real franchisor costs to recruit, train and open the unit leaves AED 40,000. Set beside the AED 90,000 a year that an illustrative 5% royalty produces on AED 150,000 of monthly sales, the fee is clearly the smaller prize.
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