Payments made by the franchisee to the franchisor for the use of brand, system and services.
Typical fees include an entry fee, ongoing licence or system fees and often a contribution to the marketing fund. The fee structure must be set out transparently in the franchise agreement and should match the value of the services provided. From the franchisor's perspective, predictable revenue and a fair ROI for both sides matter; from the franchisee's, calculability and the benefit of system and support.
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