Successful entrepreneurs know they can't be everywhere at once,
but they want to grow... so, what do they do?-
Once they've developed a successful concept and
hopefully mastered the system for operating the business ,
they will then sell the right to duplicate the business in other areas.
This is what franchising basically is, the initial cost to obtain the
rights to open a store under a franchise is the franchise fee.
A royalty fee is an ongoing fee that the franchisee pays to the franchisor.
This fee is usually paid monthly or quarterly and is typically calculated as a % of gross sales.
so what does an initial franchise fee run....?
remember these are just rights to obtain the franchise...
not the investment of the space, equipment, food, furniture and everything else....
Domino's Pizza --- $3,300 royalty fee 5.5%
Chik Fila --- $5000
Subway --- $15,000 royalty fee 8%
Sonic --- $22,500 royalty fee 4-5 %
Dairy Queen --- $20,000-$35,000 royalty 4-5%
Five Guys Burgers and Fries --- $25,000 royalty fee 6%
Pizza Hut --- $25,000 royalty fee 6.5%
KFC --- $25,000 royalty fee 4%
Qdoba --- $25,000 royalty fee 5%
Popeye's Chicken & Biscuits --- $30,000 royalty fee 5%
Jimmy Johns --- $35,000 royalty fees 4.5%
Panera Bread --- $35,000
Salad Works --- $35,000 royalty fee 5%
Dunkin Donuts --- $40-80,000 royalty fee 5.9%
Applebee's Neighborhood Grill and Bar--- $40,000 royalty fee 4%
Pink Berry --- $45,000 royalty fee 6%
McDonald's --- $45,000 royalty fee 12.5 %
Taco Bell --- $45,000 royalty fee 5.5%
Burger King --- $50,000 royalty fee 4.5%
Baja Fresh Mexican Grill $50,000 royalty fee 5%
