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Hidden and Creeping Franchise Fees

Every franchise lawyer knows that one of the conditions for a distribution arrangement to be considered a franchise is that the franchisee is required to pay (whether in cash or other consideration) a "fee" to the franchisor or its affiliate. The term "fee" is broader than it might first appear.

21 minute read December 31, 2015 at 11:00 PM
By
Rupert Barkoff
Hidden and Creeping Franchise Fees

Every franchise lawyer knows that one of the conditions for a distribution arrangement to be considered a franchise is that the franchisee is required to pay (whether in cash or other consideration) a “fee” to the franchisor or its affiliate (hereinafter referred to collectively as the “Franchisor”).

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