The initial fee that you are required to pay is for the use of the brand name within a specific location or territory and the training that you are provided. The marketing and royalty fee is usually calculated as a percentage of the turnover. On average, the ongoing fee is around 8% of sales.
In some cases, service fees are paid through mark-ups on products and equipment and so ongoing fees may be nil. Paying ongoing fees can have the advantage of ongoing interest from the franchisor in your business.