We Over Thought Ourselves
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Transcript of We Over Thought Ourselves
We Over Thought Ourselves
• The intent behind having four franchise fee models was to offer a menu for people to choose from to best meet their franchise needs
• As you saw earlier today people are gravitating to two of the franchise fee models
Existing Four Franchise Fee Models
• Flat Fee• Hybrid• GCI• All Inclusive
Existing Four Franchise Fee Models
Fee Model Type How Many
Flat Fee 31
Hybrid 21
GCI 0
All Inclusive 13
Moving to Just TWO Franchise Fee Models
• Flex Model (Formerly Known As Hybrid) – – Includes both GCI and Flat Fee Options
within the plan• All Inclusive Model
Let’s Review Back
• November 2011 we introduced the All Inclusive Franchise Fee Model
• Structure of this fee model has not changed
This Is What We Presented Back in 2011All-Inclusive Model –
• Office Fee = $525/Month for first office and $100/Month for each subsequent office under the same contract (includes franchise, broker management system and a broker website)
• Here’s How the $525 Breaks Down = - $200 to franchise and broker management systems and broker website- $163 to REI - $163 to Region
This Is What We Presented Back in 2011
All Inclusive Model –
• Institutional Marketing = $25/Executive/Month
You may charge an additional regional IM fee
This Is What We Presented Back in 2011
All Inclusive Model – • Royalty =
– (< $99k): $195/Transaction - $75 = $60 to REI, $60 to Region
– ($100k-$499k): $295/Transaction - $75 = $110 to REI, $110 to Region
– ($500k-$999k): $395/Transaction - $75 = $160 to REI, $160 to Region
– ($1mil+): $495/Transaction - $75 = $210 to REI, $210 to Region
Questions?