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What’s a renewal fee?
A renewal fee is the fee a franchisee is often asked to pay if they wish to renew their franchise agreement when the initial term or any subsequent renewed term comes to an end - provided the franchisor agrees to the renewal.
Not all franchise agreements have renewal fees and anyone considering entering into one should check its terms to see if one is payable and any criteria that should be met before a franchisor will consider renewing it.Any criteria for renewal will usually be detailed in the franchise agreement and may incur the franchisee in additional expenditure - which will be in addition to the renewal fee - for example, having to refurbish the premises from which it operates the franchise to bring them up to the current standard required.
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