Franchise contracts are complex and vary for each franchiser. Typically, a franchise contract agreement includes three categories of payment that the franchisee must pay the franchiser. First, the franchisee must purchase the controlled rights, or trademark, to the franchiser business in the form of an upfront fee; second, the franchiser often receives payment for training, equipment, or business advisory services from the franchisee; and lastly, the franchiser receives ongoing royalties or a percentage of the business’ sales.
Franchise contracts are complex and vary for each franchiser. Typically, a franchise contract agreement includes three categories of payment that the franchisee must pay the franchiser. First, the franchisee must purchase the controlled rights, or trademark, to the franchiser business in the form of an upfront fee; second, the franchiser often receives payment for training, equipment, or business advisory services from the franchisee; and lastly, the franchiser receives ongoing royalties or a percentage of the business’ sales.
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