Small business answers — NOW!

Franchise fee definition

What is a franchise fee? 
A franchise fee is the upfront cost of entry when purchasing a franchise business. This fee is primarily paid to the franchisor and is used by the franchisor to fund the initial support required by new franchisees.

This support includes infrastructure upgrades such as technology, the hiring of additional employees, and other operational support items to keep up with the amount of new franchisees entering the system. 
Brain Trust contributor: President-Life Changer of Franchise Selection Specialists Inc.
Related Categories: Cash Managment, Franchising
© 2007, Small Business Network, Inc., All Rights Reserved.
Subject to the Terms of Use of
Print this page   Bookmark this page   E-mail this page to a friend   Go back to previous page
AskJim ID: 349