A: Under New York law (13 NYCRR § 200E) "Franchise Fees" are defined as follows:
"A franchise fee includes but is not limited to, payments that are made before, upon, or after execution of an agreement to purchase, process, resell or otherwise distribute a manufacturer's, a distributor's or a licensor's goods, services, equipment, inventory or real estate"
The word "payment", includes those made in the form of a lump sum, installments, periodic royalties, profits, cash flow, or those reflected in the price of goods, services, equipment, inventory or real estate sold or leased by the manufacturer or licensor to the distributor or licensee respectively.
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