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The Difference Between Franchising & Licensing

There’s a big difference between franchising and licensing – at least in the food business.

As a license, Dine-In Delivery offers the opportunity to be in business without the burden of a 10% or more royalty fee to the licensor. A typical franchise will charge a license/ad fund fee equal to 10% or more of your gross sales. They will take that fee off the top, before you get paid anything.

Should you do $1 Million per year of gross sales, that means you will be paying $100,000 per year off the top before you make anything at all.

With a license, like we offer, you pay a fixed fee – say $2,000/year to license the use of our name, but that fee does not go up as your sales increase. So, in the same example, $1 Million of gross sales will cost you $2,000/year, not $100,000.

Big difference.

And, should the $2,000 or so seem like to much, you are free to cancel your licensing agreement at any time and start operating under your own name. In fact, we recommend you incorporate under a different name in case you should decide to do that anytime in the future.