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Tuesday, January 11, 2011

Franchise business proposal

A reader asked for my views on this franchise business proposal. I am  not familiar with the business, but I know of many people who invested in the bubble tea franchise and lost their capital. If you have any inside knowledge of this franchise, please share it.


FRANCISE OF HEALTH PRODUCT
Franchise fee: 15k (3years)
Royalty fee: 5 - 6 % on sales
Marketing fee -1.5% on sales
 
The development manager/partner said that the total estimated cost is about 150k to 180k, with a breakdown for legal fees, misc fees, renovation, rental for 3 months, insurance etc.  It is a healthy food franchise. 


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