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 YO! sushi kiosks franchise
Yes
Find Out MoreN/A
Request Free Information
Send a free enquiry to YO! sushi kiosks for further information!
Start your own Chop & Wok franchise
Yes
Find Out MoreProfit between 27 to 33% of turnover
Request Free Information
Send a free enquiry to Chop & Wok for further information!
Start your own The Travel Franchise franchise
Yes
Find Out MoreN/A
Request Free Information
Send a free enquiry to The Travel Franchise for further information!
Start your own Post & Packing franchise
Yes
Find Out More265,000
Request Free Information
Send a free enquiry to Post & Packing for further information!
Start your own Premier Education franchise
Yes
Find Out MoreN/A
Request Free Information
Send a free enquiry to Premier Education 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
-
Why does Mail Boxes Ect. work as a franchise business?
Added one day ago | 2 min read
-
Women in business: The advice any new franchisee should know
Added 3 days ago | 2 min read
-
Sales Geek: Behind the B2B franchise trying to start a sales revolution
Added one week 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 -
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
What Franchise Newsletter
Keep up to date with all the industry news