What fees are associated with a Franchise?

The two ongoing fees normally associated with most franchise systems are “Royalties” and “Advertising Levies”.
Royalties are normally fixed as a percentage of the franchisees turnover and are paid to the Franchisor for providing ongoing support in the way of technical, management and general business support. Some Franchisors however just apply a flat monthly fee irrespective of turnover. Most Franchise systems also manage a central advertising fund to which all franchisees contribute, and this like royalties is normally calculated as a percentage of monthly turnovers.

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