I am starting a company that offers someome the opportunity to manage of their own family directory or citysite. This will be an opportunity for someone to purchase our manager system and run their own website and possibly magazine to go along with it. We are still tweaking the business system and how it will all work but, we are wondering if we should offer this business as a franchise with higher start up fees with a percentage per month for a franchise fee like this:
Franchise Fee $20,000 Monthly Franchise Fee 5% on gross profits
Or do it like this:
One time franchise fee of $2000 Monthly franchise fee (set fee) $100
On both options they would pay more per month if they run the magazine as well. Plus they would have the added expense of the design fee for the magazine.