What fees are assessed?
DEALERSHIP FEE – is the annual fee for the use of our brand name, slogans, and business model.
ADVERTISING FEE – a fairly common and widely used monthly fee, it theoretically can either be instituted on a flat or percentage basis, and in most cases companies will charge either 2 or 3 percent of monthly revenue. Ours however, DOES NOT reoccur on a monthly basis. We only implement it from time to time, as necessary to fund the cost of promoting our brand and building awareness through occasional, corporate based, advertising campaigns. All dealers participate in and subsidize these programs. Everyone kicks in the same amount, which is a flat fee and is determined by dividing the cost of the campaign by the total number of dealers under the umbrella of the brand.
PROJECT FEE – this flat fee may occur from time to time to fund the cost of special projects. Just like the advertising fee, it’s determined by dividing the cost by the total number of dealers.
COMPLIANCE FEE – this flat fee may periodically occur to fund the cost of ensuring that our dealers remain in compliance. It’s determined by the cost involved to perform an on-site compliance check.
TERRITORIAL PROTECTION FEE – this flat fee, available to senior dealers, is used to protect their future growth and expansion by preventing anyone else from entering their market. It’s determined by a number of different factors and variables.