Franchisee fee

Did you know there is a 5% cap on franchisee fee. BS reports

The Franchise Association of India (FAI) has demanded removal of the 5 per cent cap on franchise fees.

“We want liberalisation in the area of franchisee fee payment by the franchisee to the franchiser. This is particularly important in the case of foreign franchisers. At present, there is a cap of 5 per cent on payment of franchise fees. This needs to be done away with,” said C Y Pal, national president, FAI, on the sidelines of India Franchise Expo 2007 here