BREAKING DOWN FRANCHISE AGREEMENT: THE HIDDEN COST AND FEES

Franchise agreement are the legal contract between the franchisor and franchisee, outlining the terms and condition of their relationship.

This agreement gives the franchisee the right to use the franchisor Trademark, Operating System and Business Model for a set period of time, subject to fees and royalties.

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There are many hidden cost and fees are there in the franchise agreement, some of them are:

·????? Franchise Fees

·????? Royalty Fees

·????? Advertising and Marketing Fees (Promotion of Brand)

·????? Renewal Fees

·????? Equipment and Inventory Cost (Purchase from approved suppliers and sources as they have set the profit margins)

·????? Training and Support Cost (Training of the franchisee)

·????? Legal Fees (lawyer fees to review and advice on the agreement)

·????? Miscellaneous Fees (Technology, insurance, audit fees)

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These all are the cost and fees which every franchisor and franchisee has to look after this before signing the franchise agreement which will leads to maximise the chance of success of the business.