As business men and women, we’re always on the hunt for the “next best thing.” But once we venture into the franchise world, we need to balance the necessity of a proven model without crossing the line into an outdated business plan. After all, no one would have wanted to buy into a Blockbuster franchise on the eve of Netflix and Redbox emerging into the marketplace.

Converting your thriving business into a profitable franchise will bring about a seemingly endless laundry list of decision-making. One you will need to face is setting the best term for franchisees. Franchise terms, the length of time you are allowed to operate the business, typically come in three different flavors: 5 years, 7 years, or 10 years. While I have seen some deviate, such as a 20-year term, most businesses abide with these timeframe standards.

As you prepare to close the deal on your first franchise, you will be offered a one-time opportunity for purchasing additional units. This is the multi-unit agreement. To incentivize the purchase of additional units, franchisors oftentimes discount the second and third unit franchise fee up to 50% or more.

The franchise fee varies between franchises, but aspiring franchisees need to have a general idea of what to expect when it comes to covering the initial fee. In my experience, the average franchise fee range is between $25,000-$50,000 for a single unit.