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Understanding the Financial Side of Franchising: What You Need to Know

The Franchise Consulting Company

This fee grants you the right to use the franchisor’s brand, trademarks, and proprietary systems. Franchise fees can range from a few thousand dollars to over $50,000, depending on the franchise brand and the size of the operation. The cost of leasing the space and making any necessary improvements (e.g.,

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The Complete Guide to Franchises

AllBusiness.com

These costs can vary widely depending on the franchise type—from just a few thousand dollars for a home-based business to over $1 million for a full-service restaurant. Royalty Fees: Most franchisors charge either monthly royalties as a percentage of gross sales, typically between 4% and 8%, or a set monthly fee.