What Franchise Payments Should Franchisees Expect to Pay?

July 3, 2006 by Cris | 0 Comments

There are several one-time and ongoing payments related to owning a franchise. The Federal Trade Commission (FTC) requires franchisors to list these fees in the Franchise Agreement:

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  • Initial franchise fee;
  • Legal and accounting fees;
  • Property/casualty, liability, and other insurance;
  • Employee salaries;
  • Building/outfitting costs;
  • Rent and security deposits;
  • Equipment/software upgrades. Some franchisors require planned equipment and software upgrades;
  • Royalties;
  • Advertising fees.

    • Learn about them all here.

    In Basic Guidelines, Law & Agreements

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