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Franchise Fees & Costs

franchise fees and costs

Big Mouth Direct offers an easy and flexible plan which makes enables many to own their own franchise.  There are four types of fees that a franchisee will pay to Big Mouth Direct:

  1. Initial franchise fees
  2. Ongoing royalty fees
  3. Ongoing advertising fees
  4. Ongoing data management fees

Initial Franchise Fees

At the time of signing the franchise agreement, the franchisee shall be required to pay Big Mouth Direct an initial franchise fee.  This initial fee is simply determined by the number of small-to-medium sized businesses in the territory the franchisee plans operate his or her business.  Franchisees can determine start small and later determine if they wish to expand their territory.  Franchisees pay one dollar ($1.00) per small-to-medium sized business in their exclusive territory.  If a franchisee determines to secure an exclusive territory with ten thousand (10,000) small-to-medium sized businesses, Big Mouth Direct will add an additional ten percent more businesses in the territory-in this example, another 1,000 businesses, to offset any listings in the franchisee’s exclusive territory which may be large retail chains, businesses that relocated or may be out of businesses.  That way, franchisees are ensured the proper number of small-to-medium sized businesses in their territory.

Further, Big Mouth Direct gives its franchisees an option to expand its territory for ninety (90) days from the signing of the Franchise Agreement at the same rate of one dollar ($1.00) per small-to-medium sized business; thereafter, the rate shall be two dollars ($2.00). This provision allows the franchisee to approach the Big Mouth Direct business conservatively. Then, if the franchisee enjoys early success, he or she may increase the number of small-to-medium sized businesses by expanding its exclusive territory.

Royalty Fees

Franchisees are required to pay Big Mouth Direct an ongoing royalty fee of twelve and one half percent (12.5%) of sales as they are collected each month.  In that way, franchisees only pays Big Mouth Direct when the customer pays.

Advertising Fees

Franchisees are required to pay Big Mouth Direct an ongoing advertising fee of  ten percent (10%) of sales as they are collected.  In that way, franchisees only pay Big Mouth Direct when the customer pays.  Big Mouth Direct is dedicated to optimize its national online business directory, and its suite of digital products and services.  Franchisees contribute to those online advertising efforts to  increase Big Mouth Direct’s visibility on the Internet and to drive traffic to its online sites.

Data Management Fees

Franchisees are required to pay Big Mouth Direct an ongoing data management fee of two and one-half percent (2.5%) of sales as they are collected.  In that way, franchisees only pay Big Mouth Direct when the customer pays.  Big Mouth Direct, through its affiliate Biz Data Systems Inc., provides franchisees with a cloud-based, real-time data management and document tracking system from anywhere at any time with any device whether desktop or mobile, which generates data and reports that empower franchisees to operate their businesses efficiently and profitably.

Summary of Franchise Fees and Fulfillment Costs

After taking into account franchise fees and other expenses, including a royalty fee (12.5%), advertising fee (10%), data management fee (2.5%), and paying for fulfillment, customer service, and tech support (50%), franchisees will gross 25% of retail digital sales made to their clients.

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