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Are all training costs included in the franchise fee?
What is or is not included in the franchise fee will be set out in the franchise agreement. Clearly you need to ensure that what is in the franchise agreement reflects the information that was provided to you by a franchisor before you committed to the franchise. Normally the franchise prospectus will set out information about the initial training.
You would certainly expect the initial training costs to be included in the initial franchise fee. That is the standard approach in the UK. Normally the initial training will last a week to two weeks and will be at the franchisor’s headquarters and/or another outlet. What will generally not be included in the initial fee will be your accommodation and living expenses for attending the training, which, generally speaking, franchisees have to pay themselves.
Any additional training and support to be provided by the franchisor will generally be provided subject to a charge payable to the franchisor. In an ideal world the charges payable to a franchisor should not include any profit element, because franchisors have an interest in ensuring that franchisees are properly trained.
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