The franchise business will contact you by means of email and/ or telephone only to the email address and phone number you have provided.
By submitting the enquiry form you are consenting to send your personal information to the selected franchise business.
You also agree to receive further newsletter email marketing from What Franchise.
Close
Are a franchisor’s management service fees always charged as a percentage of gross sales?
It is common for management service fees to be charged as a percentage of turnover. The actual percentage will depend on the nature of the particular franchise, although in many cases the percentage will often be somewhere between 4-10 per cent, with the frequency of payments varying from weekly, monthly, quarterly or, very rarely, annually.In some cases, a franchisor may ask for a guaranteed management service fee, meaning that a franchisee will have to pay the higher of an amount detailed in the franchise agreement and an amount calculated using the relevant percentage of turnover. For example, the greater of £1,000 per month or six per cent of turnover for that month. The franchisee should also consider whether the management service fee includes any other fees that may be payable to the franchisor, such as a contribution towards marketing. The important issue for the franchisee will be whether he or she is happy that the management service fee will not reduce profitability, when taken into consideration with other costs that may be payable in relation to the franchise business, to an extent that the franchise business is an unworkable proposition.
You might also be interested in

Answered by Vincent Anthony
Vincent Anthony writes: The property market has wide appeal because it is relevant to everyone: we all... read more

Answered by Louise Harris
Louise Harris writes: Richness or wealth is relative. We always want more, I guess. So, what is... read more

Answered by Shelley Nadler
Shelley Nadler writes: A concern that businesses may have when deciding to franchise their business, is the... read more

Answered by Alan Wilkinson
Alan Wilkinson writes: There are two elements to consider here. First is the franchise fee itself, and... read more
Exciting Franchise Opportunities

Start your own The Travel Franchise franchise
Yes
£150,000

Request Free Information
Send a free enquiry to The Travel Franchise for further information!
_75_74_s.jpg)
Start your own Muscleworks Gym franchise
Yes
£1,450,000
_75_74.jpg)
Request Free Information
Send a free enquiry to Muscleworks Gym for further information!

Start your own Actors Cast International Franchise franchise
Yes
N/A

Request Free Information
Send a free enquiry to Actors Cast International Franchise for further information!
_75_75_s.jpg)
Start your own Certax Accounting franchise
Yes
£92,000
_75_75.jpg)
Request Free Information
Send a free enquiry to Certax Accounting for further information!

Start your own Dish’d franchise
Yes
£500,000

Request Free Information
Send a free enquiry to Dish’d for further information!
Companies to Consider

Get expert franchising news delivered straight to your inbox
Franchise news, advice and new opportunities delivered weekly.
Must Read Articles
-
50 franchise brands with training programmes in 2025
Added 6 months ago | 2 min read
-
Johnny Pearce: “Sustainability isn’t just a trend – it’s a growth strategy”
Added one month ago | 2 min read
-
Franchise funding: How to beat the banks
Added 2 months ago | 2 min read
Franchises by Minimum Investment
Find your next business opportunity
Search 100s of UK franchises and become your own boss today.
-
Under 10k
Starting a franchise doesn't have to be costly
Click here -
Under 20k
A mid-range investment for the more experienced
Click here -
Under 50k
If you have experience and more to invest
Click here -
Over 50k
If budget is not an issue, then don't miss these
Click here -
Local Franchises
Find the perfect franchise in a location to suit you
Click here
COPYRIGHT © 2025 ARTICHOKE MEDIA LTD Registered in England and Wales No 14769147 Registered Office Address: Jubilee House, 92 Lincoln Road, Peterborough, PE1 2SN
With the publication of Getting Started in Franchising, What-Franchise.com is not offering legal, financial or any other professional advice or endorsements. Readers are encouraged to seek advice from professionals in specialised fields before acting on any information published herein. The views and opinions expressed in Getting Started in Franchising are those of the author(s) and do not necessarily reflect the views and opinions of What-Franchise.com members or staff.
What Franchise Newsletter
Keep up to date with all the industry news