The second difference is that the return method is different. The franchise fee is non-refundable, which is the cost of joining a brand. The deposit shall be returned to the franchisee within the specified time or the time agreed in the contract.
The third difference is that the guarantee is different. The franchise fee is a rule set up only for joining a certain brand. Margin is a kind of guarantee risk, which needs to be returned or offset within the scope required or stipulated by a brand.
Difference four, the cost is different. Generally, the amount of down payment is greater than the amount of contract advance payment to avoid possible risks. The joining fee is a unified fee for the whole country or a certain region. The joining fee may be cheaper than the deposit, but it does not rule out that the joining fee is higher than the deposit.
Extended data:
The initial fee is the price for obtaining the right to use intangible assets such as brands, technologies and services provided by the headquarters, and the deposit is the credit guarantee for the return of intangible assets (such as materials). ) and articles provided by headquarters. In addition to the above two expenses, they shall be paid when signing the franchise contract, and a certain management fee (equity fund) shall be charged for part of the expenses of subsequent supervisors during the contract period.
There are many expenses such as management fees now. The management fee is paid to the headquarters, because the franchisees use the trademark of the headquarters, so they will attract more customers and get more business income. It can be charged monthly or once a year.
References:
Franchise fee _ Baidu Encyclopedia
Performance bond _ Baidu Encyclopedia