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 renewal fee cover?
Franchisees who have fulfilled their contractual obligations can expect to be granted a new term on expiry of the original term of the franchise agreement. However, those who have not met their targets, or are unsuitable to continue the business further, may not be offered the option to extend. In some cases such renewal will require the payment of a fee. The renewal fee can be as little or as much as the franchisor decides. In some cases, it covers only the administration costs of the franchisor in dealing with the renewal. In other cases, there may be a premium element to encourage the franchisee to think carefully before the renewal. The renewal fee differs to the initial fee since the franchisee does not usually get anything for it, other than the option to renew the franchise agreement. However, some franchisors may use the renewal fee to pay for upgrades to the physical location of the franchise business. Renewal fees are an important consideration for both franchisors and franchisees and the terms upon which renewal fees are paid and what they cover should be set out in the franchise agreement.
You might also be interested in

Answered by Alan Wilkinson
Alan Wilkinson writes: The short answer is no. The interesting bit is why a franchisee should actually... read more

Answered by Louise Harris
Louise Harris writes: This question is one that many have explored and much has been written on... read more

Answered by John Pratt
John Pratt writes: Virtually all franchise agreements are granted for a specific term and either contain an... read more

Answered by Shelley Nadler
Shelley Nadler writes: The answer to this will really depend on the reason your franchise is not... read more
Exciting Franchise Opportunities

Start your own School of Rock franchise
Yes
Find Out MoreN/A

Request Free Information
Send a free enquiry to School of Rock for further information!

Start your own The Design Print Distribution Group franchise
Yes
Find Out MoreTurnover circa £120,000. 30% profit...

Request Free Information
Send a free enquiry to The Design Print Distribution Group for further information!

Start your own Cello franchise
Yes
Find Out More£95,000

Request Free Information
Send a free enquiry to Cello for further information!
_75_36_s.jpg)
Start your own BT Local Business franchise
Yes
Find Out More£1-2m t/o, 10-20% profit
_75_36.jpg)
Request Free Information
Send a free enquiry to BT Local Business for further information!

Start your own Stencil-Tech franchise
Yes
Find Out MoreDiscussed at information disclosure...

Request Free Information
Send a free enquiry to Stencil-Tech 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
-
Brexit property investment myths BUSTED!
Added 3 years ago | 2 min read
-
“We’ve found new ways to support all of the franchising industry”
Added 14 hours ago | 2 min read
-
5 greatest lessons we’ve learnt from COVID
Added 2 days 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