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Wolfdogg,

Thanks for sharing more on their pricing.

When CN started they were Only charging $499 for a franchise. And with such a small price it didn't take them long to get up near 500 franchisees. At That time they were also only charging $70 a week for the Content - that was the Minimum price, as at That time her Take was a minimum $70 or a percentage of Gross Sales whichever was higher (which Punishes those who can get Top Dollar for their ads).

$70x500 franchisees is $35k a week - minimum.

No wonder the owner was able to Hire a couple of Helpers to find the content and upload it so the franchisees could download it to their own computers.

But within the above there are some Important Lessons to be learned...

=> Keep the franchisee fee low and you'll have more franchisees.

=> Give them something for their ongoing weekly fee - too many franchisers just call it Royalties and give nothing for it, which creates disgruntled franchisees over time.

=> Keep the weekly fee Fixed as additional Incentive for franchisees to Generate More Money.

(Years ago a franchiser came to see me about selling more franchises. With his % for royalties, % for marketing (which was one ad in the yellow pages), % for Admin and so on, he was sucking 20% of the money. So someone who did $1,000 a week had to pay $200 off the bat to this guy. They were probably paying $300 tax After that - leaving them $500 to live on and pay the business running costs - which involved a Lot of driving around.

A guy doing $1,500 a week, had to pay $300 to him. take away the additional tax money too and these guys had to earn Big just to make what they could make in a job.

If he'd charged them a flat $100 a week, or even $50, he'd have had Loyal Franchisees instead of complaining ones who began to see him as a leach. And he'd have franchisees who had Incentive and could Keep the fruits of their efforts instead of paying more of it to someone without getting any extra for the additional money.

Michael Ross