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Fees and Royalties
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• Franchise Fee – The initial fee that a franchisee pays to join the franchise.
• Royalty Fee – A percentage of the franchisee's sales that the company receives as a fee for using its branding and products.
• Advertising Fee – A fee that franchisees pay to contribute to the company's advertising and promotional activities.
Legal Considerations
• Franchise Agreement – The agreement that outlines the terms and conditions of the franchise.
• Intellectual Property – The company must protect its intellectual property such as trademarks and copyrights.
• Dispute Resolution – The agreement should also include a mechanism for dispute resolution.
