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    What Are The Costs Of Joining A Clothing Store?

    2014/10/5 16:49:00 8

    AffiliateClothing StoreFees

    Now the clothing industry belongs to a treasure land, but it is not enough to know the market and the address of the selected shop alone.

    As the saying goes, there is no free lunch in the world. Although the clothing industry is able to make bold estimates for the current market situation, it is a profitable business, but it is necessary for the franchisee to pay some of the expenses to headquarters for operation.

    Now let me explain to you, what is the cost of joining a brand clothing store?

      

    One

    Franchise fund

    Franchise money, also known as the first concession fee, is a one-time fee paid by the franchisee to the headquarters. It includes the right of the franchisee to use the trademark and special technology developed by the headquarters, which reflects the benefits of the franchisee's franchising system.

    The cost varies from headquarters to headquarters. For example, Japan's "7-11" company is 3 million yen, "1 million 500 thousand yuan" of the company and only 500 thousand yen of the "family market" company.

      

    Two

    Bond

    As a guarantee for future payment of all expenses and debts, the deposit also has the prepayment nature of the commodities provided by the headquarters to the franchisees, with the number of companies ranging from "family market" to 2 million 500 thousand yen, and "jiso" 750 thousand yen.

    Whether the contract is refunded or not will vary according to the contract between the two parties.

      

    Three

    Royalty

    The royalty is the fee charged by the headquarters for the franchisee to conduct business guidance, and is paid by the franchisee on time.

    The calculation method of royalty varies according to the industry. For example, convenience stores are generally gross 30%-50%, fast food restaurants are generally 5%-10% of sales, rental industry is 6%-8% of rental income, pubs are charged by shop area, and there are fixed packages and so on.

    4 liquidated damages

    If violation of the obligations and prohibitions stipulated in the contract is made, the liquidated damages shall be paid to the injured party as compensation in accordance with the contract stipulations.

    5 other expenses

    Such as store design and construction costs, training fees, advertising expenses, equipment leasing, financial business fees, accident insurance fees, etc.

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    How Does A Brand Franchise Chain Operate Correctly?

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