A franchise fee is an initial payment made by a franchisee to a franchisor for the right to operate a franchise. This fee grants the franchisee access to the franchisor's brand, business model, and support systems. The amount can vary widely depending on the franchise and can range from a few thousand to several hundred thousand dollars. In addition to the franchise fee, franchisees may also be required to pay ongoing royalties, which are typically a percentage of their sales. These fees help cover the costs of marketing, training, and other support provided by the franchisor, ensuring that franchisees can successfully run their businesses under the franchise brand.