Simon Pullum – Managing Director, Azura Group
Simon Pullum of The Azura Group discusses management service fees and how best to calculate them.
“How Much Service Fee am I owed? – The perennial question asked by every franchisor.
Franchise networks use different MSF (Management Service Fee) methods to help ensure they receive all the MSF due to them. The common techniques are:
- Fixed Fees
- Percentage of Invoices Raised
- Percentage of Monies Received
Regardless of the MSF method, what techniques can we use to know what is due to us?
The first method of Fixed Fees stands on its own. There are a number of disadvantages with this method, however knowing what MSF is due is not one of them. This part is simple and everyone knows what is due when.
Both the other methods rely on the franchisor knowing what they franchisee has been up to and there are a number of methods that are used…”
Read the full article here.
