Does A Franchisor Have The Right To Require The Franchisee To Pay Him

Franchise Key:

The franchisor can certainly require the franchisee to pay him a monthly minimum fee to cover the costs created by his help, his services etc….

This practice is not particularly wide-spread but you must understand that in certain activities the sector granted can be poorly handled by a franchisee who has other businesses or who lacks energy or works in the “black’ economy…

There are also some franchisors who require a fixed monthly sum plus a percentage as a means of ensure a minimum amount of fees and of reducing the level of fees on large turnovers.