{"id":2435,"date":"2017-05-26T14:41:24","date_gmt":"2017-05-26T18:41:24","guid":{"rendered":"https:\/\/www.mbbmanagement.com\/?p=2435"},"modified":"2017-05-29T07:42:28","modified_gmt":"2017-05-29T11:42:28","slug":"understanding-franchisor-fees","status":"publish","type":"post","link":"https:\/\/www.mbbmanagement.com\/restaurant-franchising\/understanding-franchisor-fees\/","title":{"rendered":"Understanding Franchisor Fees"},"content":{"rendered":"

There are amazing benefits when contemplating an investment of a franchise business<\/a>, but those benefits do not come without their costs. From up-front initial fees to payments that are tied to specific timetables or events, most franchisors have several different fees that they request to support the resources used by the corporate company on behalf of the franchisee.<\/span><\/p>\n

It\u2019s paramount to remember that this is by no means an exhaustive list of any charges the franchisor may levy on the franchisee. Any franchise agreement must be stringently reviewed<\/a> to highlight any fees that will be charged, as well as what the franchisee will receive in conformance with said fees.<\/span><\/p>\n

Start-up franchise fee<\/b><\/p>\n

Most people with a passing knowledge of the franchise model are aware of the start-up franchise fee. This payment is usually made by the franchisee to the franchisor once a finalized agreement<\/a> is signed and the franchise license is granted. More often than not, this initial fee can be made in other forms such as a payment schedule. This payment is typically submitted as a one-time, lump-sum payment.<\/span><\/p>\n

Generally, the start-up franchise fee<\/a> is made to the franchisor in return for an agreement to supplying the goods, processes, and intangibles that the franchisee will need to get the business operational. This can include things such as:<\/span><\/p>\n