Franchising as a business strategy applied to retail trade holds some financial specific features that differentiates it from traditional trade. Two concepts are highlighted in this essay: the idea of charging franchisees with an initial fee and royalties during the whole business life. We analysed the theoretical references on this procedure, based upon American articles, we observed its application in Brazilian and French franchise networks. We criticized the usage of these concepts since 1986 in Brazil, offering practical contributions in order to foster its usage at retail trade firms.
Franchising; inicial fee; royalties; business leverage; business synergies