{"id":22553,"date":"2020-04-08T11:27:13","date_gmt":"2020-04-08T11:27:13","guid":{"rendered":"https:\/\/www.xotels.com\/uncategorized\/franchise-fee\/"},"modified":"2024-12-23T09:22:02","modified_gmt":"2024-12-23T09:22:02","slug":"franchise-fee","status":"publish","type":"post","link":"https:\/\/www.xotels.com\/en\/glossary\/franchise-fee","title":{"rendered":"Franchise Fee"},"content":{"rendered":"<p>What is the meaning \/ definition of Franchise Fee in the <a class=\"glossary-only-link\" href=\"https:\/\/www.xotels.com\/en\/glossary\/hospitality-industry\">hospitality industry<\/a>?<\/p>\n<p>The Franchise Fee or cost is an initial payment that a <a class=\"glossary-only-link\" href=\"https:\/\/www.xotels.com\/en\/glossary\/franchisee\">franchisee<\/a> makes towards his <a title=\"Xotels - Hotel Franchise solution\" href=\"en\/hotel-franchise\">franchisor<\/a> in order to join the franchise.<\/p>\n<p style=\"text-align: left;\">Only when the <a class=\"glossary-only-link\" href=\"https:\/\/www.xotels.com\/en\/glossary\/franchise-fee\">Franchise Fee<\/a> has been paid in full, the franchisee may begin operations as a franchise, and the <a class=\"glossary-only-link\" href=\"https:\/\/www.xotels.com\/en\/glossary\/franchise-agreement\">franchise agreement<\/a> is officially valid. Besides the initial Franchise Fee, franchisors are also often required to pay royalty fees which are regular monthly payments. These payments are typically a percentage of either the franchisee\u2019s gross or <a class=\"glossary-only-link\" href=\"https:\/\/www.xotels.com\/en\/glossary\/net-revenue\">net revenue<\/a>. Overall, Franchise Fees vary greatly depending on the business and the applicable franchisor.<\/p>\n<p style=\"text-align: justify;\"><strong>See Also:<\/strong><\/p>\n<ul>\n<li style=\"text-align: justify;\"><a class=\"glossary-only-link\" href=\"https:\/\/www.xotels.com\/en\/glossary\/hotel-franchise\">Hotel Franchise<\/a><\/li>\n<li style=\"text-align: justify;\"><a class=\"glossary-only-link\" href=\"https:\/\/www.xotels.com\/en\/glossary\/franchise-agreement\">Franchise Agreement<\/a><\/li>\n<li style=\"text-align: justify;\"><a class=\"glossary-only-link\" href=\"https:\/\/www.xotels.com\/en\/glossary\/franchisor\">Franchisor<\/a><\/li>\n<li style=\"text-align: justify;\"><a class=\"glossary-only-link\" href=\"https:\/\/www.xotels.com\/en\/glossary\/royalty-fee\">Royalty Fee<\/a><\/li>\n<li style=\"text-align: justify;\">Franchise Disclosure Document<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>What is the meaning \/ definition of Franchise Fee in  [&#8230;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[37,9],"tags":[],"class_list":["post-22553","post","type-post","status-publish","format-standard","hentry","category-f","category-glossary"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Franchise Fee Definition \/ Meaning - Xotels<\/title>\n<meta name=\"description\" content=\"Definition: The franchise fee is an initial payment that a franchisee makes towards his franchisor in order to join the franchise.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.xotels.com\/en\/glossary\/franchise-fee\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Franchise Fee Definition \/ Meaning - Xotels\" \/>\n<meta property=\"og:description\" content=\"Definition: The franchise fee is an initial payment that a franchisee makes towards his franchisor in order to join the franchise.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.xotels.com\/en\/glossary\/franchise-fee\" \/>\n<meta property=\"og:site_name\" content=\"Xotels\" \/>\n<meta property=\"article:published_time\" content=\"2020-04-08T11:27:13+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-12-23T09:22:02+00:00\" \/>\n<meta name=\"author\" content=\"Patrick Landman\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@xotels\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Patrick Landman\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":[\"Article\",\"BlogPosting\"],\"@id\":\"https:\\\/\\\/www.xotels.com\\\/en\\\/glossary\\\/franchise-fee#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.xotels.com\\\/en\\\/glossary\\\/franchise-fee\"},\"author\":{\"name\":\"Patrick Landman\",\"@id\":\"https:\\\/\\\/www.xotels.com\\\/en\\\/#\\\/schema\\\/person\\\/f51e882bd553ae1b905fc0214cdca6f5\"},\"headline\":\"Franchise Fee\",\"datePublished\":\"2020-04-08T11:27:13+00:00\",\"dateModified\":\"2024-12-23T09:22:02+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.xotels.com\\\/en\\\/glossary\\\/franchise-fee\"},\"wordCount\":120,\"publisher\":{\"@id\":\"https:\\\/\\\/www.xotels.com\\\/en\\\/#organization\"},\"articleSection\":[\"F\",\"Hotel Terminology &amp; 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