What is the meaning / definition of in the ?

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

Only when the Franchise Fee has been paid in full, the franchisee may begin operations as a franchise, and the is officially valid. Besides the initial Franchise 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.

See Also:

  • Franchise
  • Franchise Agreement
  • Franchisor
  • Franchise Disclosure Document


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