A license fee is similar to the franchise fee except it is charged to cover the cost associated with the brand of products sold or the technology used. In effect, the franchisor is merely a broker to a patent or trademark.
To negotiate a franchise agreement, the potential franchisee needs to fully understand the terminology used in the franchising industry. Often, new franchisees misunderstand the terms ‘Franchise Fee’, ‘Royalty Fee’, ‘License’ and ‘Marketing Fee’. Once understood, […]