Franchise fee
For Cable television franchise fee in the United States see Cable television 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]
Contents |
[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.[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]
[edit] See also
[edit] References
[edit] External links
- Federal Trade Commission resources
- "Turn your business into a franchise: Franchise fees and royalties". Business Link. UK Government. http://www.businesslink.gov.uk/bdotg/action/detail?itemId=1077061265&type=RESOURCES. Retrieved 17 September 2010.
