Initial Franchise Fee
This includes all fees and payments for products and services received from the franchisor before the business opens. The initial franchise fee is usually non-refundable and paid up front. In some cases, it is payable in installments, but the franchisor must disclose the terms of payment in the contract. Sometimes the initial franchise fee is deferred or placed into an escrow account until the franchisor has completely performed all of its obligations to help the franchisee start up the business. This usually indicates that the franchisor is financially weak or that the franchise is newly organized.

Other Fees
These fees are usually explained in the form of a table which clarifies how much money must be paid to whom and when such payments are due. This may include, but is not limited to, fees for royalties, advertising, transfers (payable only upon a transfer of the franchise agreement), renewal (payable only upon renewal of the franchise agreement), training, additional support and assistance, and membership in a franchisee membership organization.

Financing the Franchise Any financing arrangements offered by the franchisor are contained in the UFOC. Often, this part will simply indicate that the franchisor does not provide any type of financing. If any financial aid is provided, the amount, interest rate, required collateral, potential liabilities upon default and any other terms and conditions must be included. Remember that you do not have to use the franchisor or its lender simply because they offer to help. Compare loan and lease services at other financial or leasing organizations as well.