Franchise fee purpose

Think of the "franchise fee" as the cost of entry into a franchise system. Someone else has created a product or service idea or concept. They've then invested time and resources developing this concept into a franchise model. The franchise fee is part of their return on their significant investment. It also helps pay for the initial set up of a new franchise.

Additionally, the franchise fee may also be used to pay for: operations manuals, marketing plans, website development, trademarks, logistics, technical support systems, and legal fees for creating the documentation required to register as a franchise in the United States.