Sound good to be true? That's what I initially thought, as well.
A "managed model" means that the corporate franchisor will manage the entire business for the franchisee, only requiring 2 hours per month of the franchisee's time once the business is up and running. Each franchisor has a corporate management team that will do everything from A to Z to get the business up and running to manage daily functions.
Some highlights of the "Managed Model" structure include:
- In addition to the traditional royalty, management fees range from an additional 4 to 5% of gross revenue
Hosting two 1-hour calls per month with the franchisee on details of the business, KPIs, goal setting, and Q&A
Recruiting, training, and management of the franchisees' staff
Handles bookkeeping, payroll processing, billing, and collection of fees payable to the franchisee.
Oversight of advertising, promotions, and marketing.
Real estate location and build-out for brick & mortar concepts, and more.
Interested to know what these four franchise brands are? Well, listen to the full podcast for a brief overview of each + more information on the "managed model" approach.
If you are interested in learning more about market availability and investment levels for any of these brands, reach out to me at [email protected] or 319.440.0857.
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