Does a $25,000 franchise fee for a Geeks on Call franchise seem too high for a home-based computer repair service? I understand that the brand name can be quite valuable once a minimal level of brand identity is recogized by the public, but at that price I would expect noticeable market brand recognition to already exist. Additionally, the royalty of 11% of gross revenue seems steep as well.
If I wanted to get into this type of business, I’d start “Computer Nerds on Call”. I would then take the $25,000 franchise fee and ongoing 11% royalty that would have gone to the franchisor and spend it on additional radio advertising instead.
Or, I’d weigh the differences with Friendly Computers who smartly has tiered their royalties at 3% your first year, 4% your second year, and 5% thereafter.