Franchise Economics 101

Standard bands for fees and royalties, based on US FDD data. These are directional reference ranges — total initial investment is sector-dependent, with no single number.

Every figure on this page carries its source, year and confidence level.

Initial franchise fee

$20k – $50k

New systems typically $25k–$40k · Source: US SBA · Medium

Royalty — median

~6.0%

Of revenue; range 4–8% (up to 12%+) · Source: FRANdata / US SBA

Marketing contribution

1% – 4%

Average ~3.5%; QSR 2–5% · Source: US SBA

Total initial investment

Sector-dependent — no single number

Per FDD Item 7 structure · Source: US FTC Franchise Rule

See the full Data Observatory