Tag: Franchise Fee Royalty Fee License and Marketing Fee – Franchise Agreement Terminology
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Franchise Agreement Costs – How Much Does it Really Cost to be a Franchisee?
The primary reason for the franchise arrangement is the increased net profit for the franchisee in using the franchisor’s name, logo, brand, or trademark. The franchisor charges an upfront fee called a Franchise Fee, monthly Royalties, in some agreements a License Fee and Marketing/Advertising minimums. These additional costs to the franchisee are paid to use the…
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Franchise Fee, Royalty Fee, License and Marketing Fee – Franchise Agreement Terminology
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’.
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Introduction to Franchises
Simply put, Franchising is a partnership relationship. As a small business owner, you have to decide if you truly want to be in a relationship with an authority in your business operation. This can be a mutually beneficial arrangement or a nightmare from day one.