Difference one, different meanings. Franchise fee is a unique form of business operations, it is the brand holder will be the intangible assets of the corporate brand according to the contract, in a unified business model to engage in business activities, the franchisee to pay a certain amount of money to the brand holder. The deposit is a kind of monetary guarantee provided for the fulfillment of the contract. And in the expiration of the contract between the two sides or when the law is canceled only to be refunded.

Difference two, the refund is different. Franchise fee is not refundable, is to join a brand need to pay the fee. And the deposit is within the specified time or the time specified in the contract is returned to the franchisee.

Difference three, the guarantee is different. Franchise fee is only as a provision for joining a particular brand and set up. And the deposit is required to achieve a brand required or specified degree before giving a refund or offset a security risk.

Difference four, the cost is not the same. The number of general security deposit is greater than the number of contractual advances to avoid possible risks. Franchise fee is a national or a certain area of the unified cost, the franchise fee may be cheaper than the deposit, but can not rule out the franchise fee is higher than the deposit.

Expanded information:

Franchise fee is the price of obtaining the headquarters of the intangible assets of the brand, technology, services and so on. The price of the right to use, and the deposit is provided by the headquarters of the intangible assets (such as information, etc.), items returned to the credibility of the guarantee, in addition to the above two fees must be paid at the time of signing the contract to join, the contract period will also be charged a certain amount of management fees (equity) for the follow-up of some of the expenditures of the supervisory staff.

Now there are also management fees and many other expenses, management fee is because the franchise to use the headquarters of the trademark, so it will attract more customers to the door, earn more business income, and should be paid to the headquarters of the fee. It may be charged monthly or once a year.

Reference:

Performance Bond_Baidu Encyclopedia