Franchise Fees, what are they and how are they used - TylersWellness

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June 06, 2020 1 min read 0 Comments

When starting a franchise business it’s important to understand the potential fees that you could be paying or people could be paying you.


on average the royalty percentage for a franchise is anywhere from about 3% up to 9% of volume.

you can determine what this is based off from in your contract.


however in some cases the fee can range from a small fraction of 1% up to even 50% or more of revenue, depending on the business. - Forbes


How is the franchise fee calculated, and what is it used for?

most common fees could be paid either weekly or monthly and it’s usually a percentage of gross sales.

this fee the franchisor can use to maintain and grow the current franchise branches.


Fun Facts:

The franchise fee for McDonald’s is $45,000. However in order to open a McDonald’s you will need a total rip investment of $1-$2 million dollars.

Opening a subway franchise will cost you the $15,000 franchise fee plus any start up costs.

To open a Chick-fil-A franchise, all you’ll have to pay is the $10,000 franchise fee.

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