Most franchisors charge ongoing fees as well as the initial franchise fee. Your franchise agreement sets them out. They come out of your takings every month, so build them into your forecast before you borrow.
Common ongoing fees
- Management service fee or royalty: usually a percentage of your turnover, sometimes a fixed monthly amount.
- Marketing levy: a contribution to national or regional brand marketing.
- Supplies: some franchisors require you to buy products or supplies through them or approved suppliers. The prices can include a margin.
- Technology and systems: fees for booking, software or point-of-sale systems.
- Renewal and transfer fees: charged when you renew the agreement or sell the franchise.
How much in total?
It varies widely by brand. In the bfa/NatWest Franchise Survey 2018, franchisees' ongoing charges averaged about 12% of sales. Check the exact fees for your brand in the agreement.
Why it matters for finance
- Fees based on turnover are paid before profit, so they apply even in a slow month.
- Lenders check affordability after these fees, so your forecast must include them.
- Ask existing franchisees what they really pay in total.
Last reviewed: 8 October 2026