Franchise Fees And Royalties Made Easy
SDNN:
One of the most common questions asked by those who are interested in franchising is “What is the difference between a franchise fee and royalties”. These two terms can be confusing so lets explore the franchise fee first.
The franchise fee is a one-time fee that is charged to the franchisee. This fee is payment, in part, for expenses incurred by you for furnishing assistance and services to franchisees. This includes the initial franchise training program, development of a web site typically awarded to franchisees, pre-opening supervision / assistance not to mention advertising and marketing programs to help kick off their business. The franchise fee is for a certain term and is renewable typically at a percentage of your then-current franchise fee. Read more.
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