A franchise agreement between the two parties usually lasts for 10 to 20 years, at which time it can be renewed if both parties are agreeable.
To be granted the rights to a franchise, a franchisee usually pays an initial, onetime franchise fee. The amount of this fee depends solely on the individual franchisor
In addition to this initial franchise fee, the franchisee is expected to pay royalty fees, usually in the range of 3 to 7 percent of gross revenues. The franchisee may also be expected to pay advertising fees, which usually cover the cost of promotional materials and, if the franchise organization is large enough, regional or national advertising
