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A: Under New York's franchise regulations a "franchise fee" is defined as a fee that 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 licesnsee respectively.
The collection of a "fee" that qualifies as a "franchise fee" is a significant factor to be considered when evaluating a business opportunity and determing whether or not the business opportunity qualifies as a franchise.
