Franchise Fee
/ˈfræn.tʃaɪz fiː/
Definitions
- (n.) An initial payment made by a franchisee to a franchisor granting the right to operate under the franchisor's brand and system.
The franchise fee must be paid before opening the new store under the franchise agreement.
Forms
- franchise fees
Related terms
See also
Commentary
Typically distinguished from ongoing royalty fees; the franchise fee is a one-time initial charge for entering the franchise system.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.