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 all management service fees based on a franchisee’s monthly turnover?
Most franchisors charge a straight percentage fee based on the gross revenues of the franchisee. The average level of continuing fees reported in the latest NatWest/bfa franchise survey is 7.5 per cent of turnover, although much higher fees can be payable where franchisors carry out administrative functions for franchisees such as invoicing customers and collecting payments or where the franchisor finds customers for the franchisee. Although not so common, some franchisors do establish a fixed fee or require payment of a minimal level of fees. Fixed fees can benefit a franchisee if their level is not too high as the franchisee can budget for a set payment for each payment period. Adjustments may need to be made at regular intervals to take into account inflation or to reflect growth, but it does provide some level of certainty. Additionally if the franchise grows rapidly, the franchisee may benefit from an initial low fixed fee. Although there is less certainty in a percentage fee, it may be less of a burden on the franchisee if the franchise is slow to perform well. Rather than facing a fixed fee based on projections that outweigh reality, the franchisee is only required to pay a percentage of what they actually are making.
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 Fruit and Veg Man franchise
Yes
Find Out More£150,000
Request Free Information
Send a free enquiry to The Fruit and Veg Man for further information!
Start your own Fat Phill’s franchise
Yes
Find Out MoreN/A
Request Free Information
Send a free enquiry to Fat Phill’s for further information!
Start your own Platinum Property Partners franchise
Yes
Find Out More£50,000 to £150,000
Request Free Information
Send a free enquiry to Platinum Property Partners for further information!
Start your own PACK & SEND franchise
Yes
Find Out MoreN/A
Request Free Information
Send a free enquiry to PACK & SEND for further information!
Start your own Treatz Desserts franchise
Yes
Find Out MoreN/A
Request Free Information
Send a free enquiry to Treatz Desserts 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 franchises with funding plans in 2024
Added one month ago | 2 min read
-
How Fun Fest’s franchisees are achieving £500,000 turnovers
Added 2 days ago | 2 min read
-
How URBAN went from hometown hero to national name
Added 6 days 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
What Franchise Newsletter
Keep up to date with all the industry news