What is the specific concept of franchise fee and what does it include?

Franchise fee is a unique form of business operation. It is a way for the brand holder to transfer the intangible assets of the corporate brand, such as intellectual property (including inventions, patents, trademarks, copyrights), organizational management assets, market Assets and human assets are granted to franchisees in the form of contracts. Franchisees engage in business activities under a unified business model according to the contract and pay certain fees to the brand holder. \x0d\ Brand usage fee\x0d\\x0d\ The brand user pays a certain fee to the brand holder for using the brand holder's intangible assets in accordance with the agreed contract, that is, the franchisee pays the franchisee a brand usage fee. \x0d\\x0d\ Performance deposit\x0d\ In order to ensure that the franchisee fulfills the franchise contract, the franchisor may require the franchisee to pay a certain deposit. This part of the fee will be paid after the expiration of the contract if the franchisee has no breach of contract and no breach of contract. When the status of the payment becomes clear, the franchisor shall return it to the franchisee without interest. \x0d\\x0d\ Brand management fee \x0d\ Marketing and brand promotion costs: \x0d\ There are some costs between the franchise headquarters and franchisees that need to be borne by both parties. The most common ones are for Advertising and promotional expenses. \x0d\ 1. National advertising and promotion expenses\x0d\?Advertising and promotion expenses that are comprehensively released nationwide or in a certain region shall be planned by the headquarters and promoted as a whole. The expenses incurred shall be shared by each store. If the advertising promotion is for the franchisor's products, the franchisee does not need to share the cost. \x0d\ 2. Regional advertising \x0d\ If it is regional advertising, when developing a franchise in the region, this part of the cost can be written into the contract as agreed content and collected on time, so that the regional publicity cost is from Apportionment by region. Many franchise headquarters give franchisees the right to regional authorization, that is, the franchisee can develop other franchisees in a certain area, and the advertising and promotion costs in this area are only shared among the franchisees in the area. \x0d\ 3. Independent promotion of the alliance \x0d\ If the promotion is for a franchise store, the cost must be borne by the franchisee. However, before the franchisor promotes independently, he can express his promotional intention to the headquarters to see if he can get publicity support. It would be better if the franchise headquarters also intends to carry out advertising and promotional activities. \x0d\\x0d\ First batch purchase fee\x0d\ If it is a physical product, the first batch purchase fee also needs to be considered. Generally, the first batch of purchase fees will be determined according to the cooperation method and operating conditions of the franchise chain system.