When considering investing in a franchise, you might ask why you would pay a franchise fee. This is a common question I get as a certified franchise consultant (CFC) all the time. A franchise fee is a one-time fee charged to a new franchisee when purchasing a franchise. Franchise fees can range from a few thousand dollars to more than $50,000 and are usually paid at the time of signing a franchise agreement. In most cases, the franchise fee is non-negotiable, at least in the case of single-unit franchises.

As a CFC, I am trained to educate investors exploring franchise opportunities on what the franchise fee covers and why it's important. The most common benefits that may be offered by a franchisor in return for a franchise fee are:

• Inclusion in the system
• Rights to use a franchisor's brand name, trademarks, and marketing materials
• Comprehensive training and mentorship
• Access to proprietary systems and business processes
• Rights to use negotiated vendor products and services
• Operations manuals
• Location selection and build-out assistance
• Grand opening campaigns
• Computers, software, and supplies