what does the initial fee cover
Initial franchise fees The initial franchise fee varies from company to company and is paid by the franchisee when the franchise is granted. The initial franchise fee covers the cost of training, recruiting, territory analysis, site identification, specialist equipment, stationary, franchisee launch, etc.n some cases there will be no on-going fee â it will be covered in a mark-up on the product. There are also cases where the franchisor will justify an increase in fees on issues such as extra start-up costs and inflation.