You’ve paid the franchise fee and opened your doors—but the financial commitment doesn’t stop there. Ongoing fees are a key part of the franchise model, and understanding them helps you prepare for long-term success.
💰 1. Royalty Fees
Most franchisors charge a royalty fee—typically a percentage of your gross revenue (often 4% to 8%). This fee supports access to brand resources, systems, and ongoing rights to use the franchise model.
📣 2. Marketing Fees
To maintain brand visibility and attract new customers, franchisees usually contribute to a national or regional marketing fund. This might be 1% to 4% of sales and supports advertising, digital campaigns, and brand awareness.
⚙️ 3. Additional Support Fees
Some brands charge for continued training, software access, technology upgrades, or proprietary tools. Always check the Franchise Disclosure Document (FDD) for the full breakdown.
Conclusion:
Franchise Man’s tip? Don’t just ask, “How much will I make?”—ask, “What will I keep?” A clear understanding of ongoing fees helps you set accurate financial projections and avoid surprises.