Advantages of Franchise Fees
Franchises are able to offer support, build their brand name, and establish growth with the help of initial and ongoing franchise fees. When you pay a franchise fee to open a location, you are buying the rights to use the brand. That money supports the franchise as a whole and, in turn, helps individual franchise owners.
The initial franchise fee to open a Tide Cleaners location is $10,000. The initial investment to open a location ranges from about $160,000 to $1.5 million, depending on whether it’s a plant store or a drop store, and various other conditions.
The continuing royalty fee is 6.5 percent of net sales. There is a requirement to contribute 4 percent of the store’s weekly net sales for marketing. These fees allow Tide Cleaners to grow and market the brand, and that benefits every franchise owner.