Franchise fee

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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]

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[edit] 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 USA it may amount to thousands of dollars.[2] 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.[3] The franchisor may provide initial training and an operating manual.[4] Then the franchisor may also advise the franchisee on management, marketing, or personnel.[5]

[edit] See also

[edit] References

  1. ^ USA Federal Trade Commission
  2. ^ USA Federal Trade Commission
  3. ^ USA Federal Trade Commission
  4. ^ USA Federal Trade Commission
  5. ^ USA Federal Trade Commission

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