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In this video tutorial, Jeff Thompson, a senior partner in a franchise and business law group, discusses the fees that franchisors need to establish. He explains that the initial fee should cover costs such as attorney and accountant fees, marketing, website creation, and travel expenses, rather than being a profit center. Thompson also talks about royalties, advertising fees, and other fees that franchisors should consider. The goal is to ensure that all costs are covered without aiming to make a profit from the initial fee.
