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.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 United States, it may amount to thousands of dollars. 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. The franchisor may provide initial training and an operating manual. Then the franchisor may also advise the franchisee on management, marketing, or personnel.
