Franchise Fee

A franchise fee is an initial payment a business owner makes to a larger company to open and operate a franchise under its brand. It grants the owner the right to use the company's name, logo, systems, and ongoing support. This fee helps cover the costs of training, marketing, and establishing the franchise. Often, it is a one-time payment, but sometimes it includes ongoing royalties based on sales. Essentially, it’s a cost for leveraging an established brand and business model to start a new location.