Franchising can be an outstanding method of distributing your goods to a larger marketplace by way of franchisees who are invested in your brand. But it is no secret that that investment can come at a significant cost for those franchisees. Besides the initial franchise fee and ongoing royalties, franchisees may have advertising fund contributions, training fees, leasing fees, construction fees, call centre fees and numerous other expenses that are payable in some regular interval to the franchisor.
Accordingly, all franchise agreements will provide for a mechanism of payment of all of these amounts. Usually, the agreement will specify a time of week or month on which some or all payments are due, and some agreements will state generally that the franchisee will be required to pay the franchisor by any method the franchisor deems fit. Read on.