What is a Franchise Fee and How Much Will I Owe? | Small Business Trends


A franchise fee is what a prospective franchisee owes to the franchisor for the rights to use the franchise brand and franchise system. Typically the franchise fee refers to a one-time payment paid in the beginning of the relationship. But there are also ongoing franchise fees.

When you buy into a franchise opportunity, you gain valuable rights by contract. But you also have legal responsibilities. You must run the business according to the operations manual and the franchise agreement. You must also pay all required fees to the franchisor.  Therefore, it’s very important to understand all fees.

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