Short clip in which Jarrad Goulding explains why franchise partners should prefer a flat fee model over a percentage-based fee. He argues that after paying a flat cost, additional earnings are entirely retained by the partner, and contrasts this with a hypothetical 15% percentage fee that would reduce take-home income.
15%
All right, Jared, Why should I go for a franchise that's got a flat fee over a percentage based fee? Yeah, we like the flat fee a lot more. We've found that the best quality franchise partners want a flat fee because once you've taken care of that flat cost, everything else you earn after that is 100% yours. So, yeah, we would suggest that if you want to come out and you want to earn the most amount of money possible, you're actually going to be financially a lot better off with a flat fee model than what you would if someone's taking 15% of everything.
