A franchise fee is a fee that a person pays to operate a franchise branch of a larger company and enjoy the profits therefrom.
DEFINITION of 'Franchise'. A franchise is a type of license that a party (franchisee) acquires to allow them to have access to a business's (the franchiser) proprietary knowledge, processes and trademarks in order to allow the party to sell a product or provide a service under the business's name. To take the McDonald’s example further, the estimated total amount of money it costs to start a McDonald’s franchise ranges from $500,000 to $1.6 million. Franchises, by definition, have ongoing costs to the franchiser company in the form of a percentage of sales or revenue. This percentage can range from 4 – 8%. For the cable television franchise fee in the United States, see Cable television franchise fee. A franchise fee is a fee that a person pays to operate a franchise branch of a larger company and enjoy the profits therefrom. By joining a franchise an investor or franchisee is able to run a business under the umbrella of the franchise. The franchisee must pay a franchise fee, which may become costly. In the USA it may amount to thousands of dollars. In return, the franchisee may enjoy the use of the franchisor's system and name for a limited time as well as assistance. Such help includes location assistance for the outlet The word franchise is of Anglo-French derivation—from franc, meaning free—and is used both as a noun and as a (transitive) verb. For the franchiser, the franchise is an alternative to building  chain stores  to distribute goods that avoids the investments and liability of a chain. 1 If the franchisee has paid a deposit to the franchisor, it must be refunded on termination of the franchise agreement; upon termination, the franchisee is prohibited from continuing to use the franchisor's marks. We have all probably eaten at a fast food restaurant sometime within the past week or picked up our clothes at the dry cleaner. Chances are these purchases were made at a franchise store. Franchising is a relatively easy way for an entrepreneur to set up his own business without excessively large start-up costs. It is also a way for the franchisor to make money without having to operate every location where his goods or services are available. Types of franchising. The types of franchising are numerous. The early model was the product franchise where a manufacturer granted the franchisee the right to sell its products, similar to what I.M. Singer did to sell his sewing machines. • FRANCHISE (noun). The noun FRANCHISE has 3 senses: 1. an authorization to sell a company's goods or services in a particular place. 2. a business established or operated under an authorization to sell or distribute a company's goods or services in a particular area. 3. a statutory right or privilege granted to a person or group by a government (especially the rights of citizenship and the right to vote). Franchise fee. A franchise fee is a fee that a person pays to operate a franchise branch of a larger company and enjoy the profits therefrom.  DEFINITION of 'Franchisee'. The party in a franchising agreement that is purchasing the right to use a business's trademarks, associated brands and other proprietary knowledge in order to open a branch. Franchise. One of the benefits of being a franchisee is that the franchisor provides all the information that is needed for running the business (such as, training and suppliers). AAA |. A franchise is a type of license that a party (franchisee) acquires to allow them to have access to a business's (the franchiser) proprietary knowledge, processes and trademarks in order to allow the party to sell a product or provide a service under the business's name. To take the McDonald’s example further, the estimated total amount of money it costs to start a McDonald’s franchise ranges from $500,000 to $1.6 million. Franchises, by definition, have ongoing costs to the franchiser company in the form of a percentage of sales or revenue. This percentage can range from 4 – 8%. It is very common for there to be confusion between the Franchise Fee and the Total Investment when talking about how much one might expect to receive when franchising. Often times when business owners are exploring the option of franchising, this area is always fuzzy. 
http://www.investopedia.com/terms/f/franchise.asp https://en.wikipedia.org/wiki/Franchise_fee https://en.wikipedia.org/wiki/Franchising http://smallbusiness.chron.com/franchising-mean-4355.html http://www.audioenglish.org/dictionary/franchise.htm http://www.definitions.net/definition/franchise%20fee http://www.investopedia.com/terms/f/franchisee.asp http://www.investopedia.com/terms/f/franchise.asp http://www.thefranchisemaker.com/learningcenter/the-differences-between-franchise-fee-and-total-investment/
what does franchise fee mean