Franchise fee

A franchise fee is a fee that a person pays to operate a franchise branch of a larger company and enjoy the profits therefrom.[1]

For the cable television franchise fee in the United States, see Cable television franchise fee.

Scope

By joining a franchise, an investor or franchisee is able to run a business under the umbrella of the franchise.

The franchisee must pay a franchise fee, which may become costly. In the United States, it may amount to thousands of dollars.[1] In return, the franchisee may enjoy the use of the franchisor's system and name for a limited time, as well as assistance. Such help includes location assistance for the outlet.[1] The franchisor may provide initial training and an operating manual.[1] Then the franchisor may also advise the franchisee on management, marketing, or personnel.[1]

See also

References
  1. USA Federal Trade Commission
  • Federal Trade Commission resources
  • "Turn your business into a franchise: Franchise fees and royalties". Business Link. UK Government. Archived from the original on 10 June 2011. Retrieved 17 September 2010.
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