Franchise fee

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. [ [http://www.ftc.gov/bcp/edu/pubs/consumer/invest/inv05.shtm USA Federal Trade Commission] ]

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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 USA it may amount to thousands of dollars. [ [http://www.ftc.gov/bcp/edu/pubs/consumer/invest/inv05.shtm USA Federal Trade Commission] ] 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. [ [http://www.ftc.gov/bcp/edu/pubs/consumer/invest/inv05.shtm USA Federal Trade Commission] ] The franchisor may provide initial training and an operating manual. [ [http://www.ftc.gov/bcp/edu/pubs/consumer/invest/inv05.shtm USA Federal Trade Commission] ] Then the franchisor may also advise the franchisee on management, marketing, or personnel. [ [http://www.ftc.gov/bcp/edu/pubs/consumer/invest/inv05.shtm USA Federal Trade Commission] ]

ee also

*Franchising

References

External links

* [http://www.ftc.gov/bcp/menus/consumer/invest/business.shtm Federal Trade Commission resources]


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