As a former franchise, I often talked to franchisees about credit card sales dollars. The stark reality was that our franchisees have been doing just fine; so fine, actually, that we often wondered why they would even bother selling a franchise to someone else at the first location. At the timeI advised them to take the hard market and do what the franchisor wanted. That might have been the ideal call afterward, but it certainly isn't now. In reality, we have all heard horror stories about franchisees that were told their charge card revenue dollars are going to the new owner instead of the Franchisor.

The truth is charge card sales dollars do not grow on trees. And while some wise franchisors continue to inform franchisees that growth is happening and that the profits will eventually start rolling up, the fact is most franchisors aren't using the capital that is required to run an operation. It's not just enough to deliver the card and assume that the clients will come. In fact, those same banks who loaned the franchise money are extremely unlikely to be ready to loan once they know you aren't generating the sort of profit they're expecting. If you can't generate enough credit card sales to cover your interest charges plus your startup costs, then you aren't going to be able to stay in operation.

Now you may be thinking to yourself"so what, I don't want the credit card for it?" Though you might get a couple of percentage of your card earnings dollars back, this will not be enough to cover your start up costs. In reality, if you are not generating enough card sales bucks, you can kiss the franchisee goodbye. In the end, they paid their franchise fee, didn't they? So there has to be a way for the franchisor to ensure their franchisors receive a return on their investment - and that is through the monthly payment procedure.

When some franchises charge the franchisee a set monthly fee, many charge a per-transaction fee, meaning every time you make a purchase (such as a dollar bill) or transaction (for example, filling out an online form) the franchisor should pay a predetermined sum. The franchisor then breaks down those charges into a fixed speed and hands it out to the franchisee. Credit card sales dollars add up fast! If you consider it, a great deal of the money paid in credit card sales dollars goes to paying attention to outstanding balance and then to the franchisor for their set commission. That's not what you want to do cupo en dolares.

There are a few card sales dollars that stay in the control of the franchisees. These include the credit card sales dollars which are paid directly by the franchisee to the franchisor. But bear in mind , they have to find this money somehow or the franchise can't stay in business. So they generally use that cash to buy inventory, enlarge, and spend in different regions. But then they do not always get everything they ask for. On occasion the franchisor may need to give back a proportion of the benefit.

So, charge card sales dollars aren't the sole source of revenue for your franchise. Remember, a franchisee needs to pay for advertising, marketing, and management fees along with everything else associated with managing a franchise. You are an investor, not an employee, so you can control your earnings by cutting costs wherever possible. Then reinvest those savings in growing your company.