The franchise business will contact you by means of email and/ or telephone only to the email address and phone number you have provided.
By submitting the enquiry form you are consenting to send your personal information to the selected franchise business.
You also agree to receive further newsletter email marketing from What Franchise.
Close
What Does A Franchisor Spend The Initial Franchise Fee On?
Shelley Nadler writes:
Usually, the initial fee covers a range of services provided by the franchisor to help the franchisee establish its business.
This will include training in the franchise system for the franchisee and possibly some of their employees (if relevant) for a specified period of time and advice and assistance on the various elements necessary to start the business. It will also include the provision of the franchise operational manuals.
For a premises-based franchise, initial assistance provided by the franchisor may include the selection of premises and advice on the design, fitting out and equipping of the business.
If the franchise is a mobile operation involving a liveried vehicle, the franchisor should provide assistance with the leasing of a suitable vehicle and the application of the livery.
In some franchise networks, the initial fee includes a package of equipment and/or products comprising all the initial requirements of the franchisee’s business. In some cases it may include the cost of a ‘turnkey’ fitting out of premises, the cost of launch marketing activity or the setting up of a website for the franchisee, plus a supply of marketing materials or templates.
The initial fee also contains an element that’s attributable to the value of joining the franchised network and the strength of the name and goodwill associated with it.
Shelley Nadler is a legal director in Bird & Bird’s international franchising team and has many years’ experience of advising on all aspects of franchising.
You might also be interested in

Answered by Vincent Anthony
Vincent Anthony writes: The property market has wide appeal because it is relevant to everyone: we all... read more

Answered by Louise Harris
Louise Harris writes: Richness or wealth is relative. We always want more, I guess. So, what is... read more

Answered by Shelley Nadler
Shelley Nadler writes: A concern that businesses may have when deciding to franchise their business, is the... read more

Answered by Alan Wilkinson
Alan Wilkinson writes: There are two elements to consider here. First is the franchise fee itself, and... read more
Exciting Franchise Opportunities

Start your own ActionCOACH UK franchise
Yes
Find Out MoreThis would be discussed at interview...

Request Free Information
Send a free enquiry to ActionCOACH UK for further information!
_75_74_s.jpg)
Start your own Muscleworks Gym franchise
Yes
Find Out More£1,450,000
_75_74.jpg)
Request Free Information
Send a free enquiry to Muscleworks Gym for further information!

Start your own Banana Moon franchise
Yes
Find Out MoreN/A

Request Free Information
Send a free enquiry to Banana Moon for further information!

Start your own Dish’d franchise
Yes
Find Out More£500,000

Request Free Information
Send a free enquiry to Dish’d for further information!
_75_75_s.jpg)
Start your own Certax Accounting franchise
Yes
Find Out More£92,000
_75_75.jpg)
Request Free Information
Send a free enquiry to Certax Accounting for further information!
Companies to Consider

Get expert franchising news delivered straight to your inbox
Franchise news, advice and new opportunities delivered weekly.
Must Read Articles
-
50 franchise brands with training programmes in 2025
Added 4 months ago | 2 min read
-
Franchise funding: How to beat the banks
Added about 4 days ago | 2 min read
-
Franchise agreements: How to navigate territory rights
Added 3 weeks ago | 2 min read
Franchises by Minimum Investment
Find your next business opportunity
Search 100s of UK franchises and become your own boss today.
-
Under 10k
Starting a franchise doesn't have to be costly
Click here -
Under 20k
A mid-range investment for the more experienced
Click here -
Under 50k
If you have experience and more to invest
Click here -
Over 50k
If budget is not an issue, then don't miss these
Click here -
Local Franchises
Find the perfect franchise in a location to suit you
Click here
COPYRIGHT © 2025 ARTICHOKE MEDIA LTD Registered in England and Wales No 14769147 Registered Office Address: Jubilee House, 92 Lincoln Road, Peterborough, PE1 2SN
With the publication of Getting Started in Franchising, What-Franchise.com is not offering legal, financial or any other professional advice or endorsements. Readers are encouraged to seek advice from professionals in specialised fields before acting on any information published herein. The views and opinions expressed in Getting Started in Franchising are those of the author(s) and do not necessarily reflect the views and opinions of What-Franchise.com members or staff.
What Franchise Newsletter
Keep up to date with all the industry news