Franchise Glossary
Franchise Fee
What is Franchise Fee in franchising?
A one-time upfront payment to the franchisor, typically $20,000 to $60,000, made at the time of signing the franchise agreement. It grants the franchisee the right to operate under the brand's system, intellectual property, and territory. The franchise fee does not cover build-out, equipment, working capital, or ongoing royalties. It is defined in FDD Item 5.