What is the meaning / definition of Fee in the hospitality industry?

The Fee or cost is an initial payment that a franchisee makes towards his franchisor in order to join the franchise.

Only when the Fee has been paid in full, the franchisee may begin operations as a franchise, and the is officially valid. Besides the initial Fee, franchisors are also often required to pay royalty fees which are regular monthly payments. These payments are typically a percentage of either the franchisee’s gross or net revenue. Overall, Franchise Fees vary greatly depending on the business and the applicable franchisor.

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