On the types of franchise fees

By accessing a franchising network at the moment of contracting a franchising agreement, a franchisor concedes the franchise package of rights to a franchisee. Making use of the benefits provided by business operations in a developed and market-recognizable franchise network, the franchisee has cert...

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Main Author: Miljković Strahinja D.
Format: Article
Language:English
Published: Faculty of Law, Niš 2016-01-01
Series:Zbornik Radova Pravnog Fakulteta u Nišu
Subjects:
Online Access:http://scindeks-clanci.ceon.rs/data/pdf/0350-8501/2016/0350-85011672217M.pdf
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author Miljković Strahinja D.
author_facet Miljković Strahinja D.
author_sort Miljković Strahinja D.
collection DOAJ
description By accessing a franchising network at the moment of contracting a franchising agreement, a franchisor concedes the franchise package of rights to a franchisee. Making use of the benefits provided by business operations in a developed and market-recognizable franchise network, the franchisee has certain contractual obligations which are embodied in financial compensation to the franchisor. The franchisee is obliged to pay the franchisor certain fees, such as: 1) the initial franchise fee; 2) the continuing franchise fee and 3) the advertising fee. The initial franchise fee may be regarded as 'an entry fee', i.e. a ticket to a franchising network. The continual fee is an active revenue which allows a franchisor to finance the activities of rendering a wide range of services to a franchisee and, concurrently, to make profit. The advertising fee is paid to a franchisor by a franchisee for services rendered in the field of advertising business. In the author's opinion, the professional public in the country should pay considerable attention to this topic, with specific reference to the experiences of countries with developed franchising business practices.
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spelling doaj.art-f4fcf662d85f4c3d86a99685b2694bc42022-12-21T19:12:07ZengFaculty of Law, NišZbornik Radova Pravnog Fakulteta u Nišu0350-85012560-31162016-01-01557221723110.5937/zrpfni1672217M0350-85011672217MOn the types of franchise feesMiljković Strahinja D.0University of Priština, Faculty of Law, Vranje, SerbiaBy accessing a franchising network at the moment of contracting a franchising agreement, a franchisor concedes the franchise package of rights to a franchisee. Making use of the benefits provided by business operations in a developed and market-recognizable franchise network, the franchisee has certain contractual obligations which are embodied in financial compensation to the franchisor. The franchisee is obliged to pay the franchisor certain fees, such as: 1) the initial franchise fee; 2) the continuing franchise fee and 3) the advertising fee. The initial franchise fee may be regarded as 'an entry fee', i.e. a ticket to a franchising network. The continual fee is an active revenue which allows a franchisor to finance the activities of rendering a wide range of services to a franchisee and, concurrently, to make profit. The advertising fee is paid to a franchisor by a franchisee for services rendered in the field of advertising business. In the author's opinion, the professional public in the country should pay considerable attention to this topic, with specific reference to the experiences of countries with developed franchising business practices.http://scindeks-clanci.ceon.rs/data/pdf/0350-8501/2016/0350-85011672217M.pdffranchising agreementfranchisefranchisorfranchiseeinitial franchise feecontinuing franchise feeadvertising fee
spellingShingle Miljković Strahinja D.
On the types of franchise fees
Zbornik Radova Pravnog Fakulteta u Nišu
franchising agreement
franchise
franchisor
franchisee
initial franchise fee
continuing franchise fee
advertising fee
title On the types of franchise fees
title_full On the types of franchise fees
title_fullStr On the types of franchise fees
title_full_unstemmed On the types of franchise fees
title_short On the types of franchise fees
title_sort on the types of franchise fees
topic franchising agreement
franchise
franchisor
franchisee
initial franchise fee
continuing franchise fee
advertising fee
url http://scindeks-clanci.ceon.rs/data/pdf/0350-8501/2016/0350-85011672217M.pdf
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