Item 6: Other Fees

Content: A disclosure of “other recurring or isolated fees or payments” that the franchisee must pay to the franchisor or its affiliates.

Purpose: This is disclosure of all other “ongoing fees” such as royalty, and advertising. It is also a complete listing of any other potential “fine print” provisions. Any other fee that you could ever have to pay to the franchisor is listed here.

Tips & Advice: This is a great example of the transparency of the Franchise Disclosure Document and how it benefits the potential franchisee. Each fee listed will have explanatory notes, so be sure to read the them. It’s a good idea to give this section close examination because if there are any opportunities for “unexpected costs” to surface, they may be found here.