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The fees that franchisees can be expected to pay when investing in a specific franchise concept include the franchise fee, the ongoing royalty fees, overhead costs and professional fees.&nbsp;A&nbsp;<a href="https://1851franchise.com/what-is-a-franchise-fee-2717526#:~:text=1851%20Franchise%20Senior%20Writer&amp;text=The%20cost%20of%20a%20concept's,%2450%2C000%20depending%20on%20the%20brand.">franchise fee</a> is a certain amount of money paid to a franchisor by an incoming franchisee in exchange for the right to replicate the business model and concept. The cost of a concept’s franchise fee will be disclosed in the brand’s&nbsp;<a href="https://1851franchise.com/what-is-an-fdd-2705192">Franchise Disclosure Document</a> and is often included as a supplemental fee in addition to the outlined startup costs. Franchise fees generally range between&nbsp;<a href="https://www.sba.gov/blog/franchise-fees-why-do-you-pay-them-how-much-are-they?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-fees-can-you-expect-when-purchasing-a-franchise-2720338" target="_blank" rel="nofollow">$20,000 to $50,000</a>, depending on the brand.When opening a franchise location, franchisees will also need to prepare to pay for&nbsp;<a href="https://1851franchise.com/how-much-does-it-cost-to-open-a-franchise-2716258">startup costs</a>, ranging from less than $10,000 to upwards of $5 million, but on average, startup costs come in at about&nbsp;<a href="https://www.franchising.com/guides/the_cost_of_opening_a_franchise.html?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-fees-can-you-expect-when-purchasing-a-franchise-2720338#:~:text=The%20cost%20of%20entry%20varies,about%20%24200%2C000%20to%20get%20started." target="_blank" rel="nofollow">$50,000 to $200,000</a>. These startup costs can include furniture, fixtures, decor packages, marketing costs, POS software, construction and architectural costs, promotions and more.&nbsp;Franchisees may also need to worry about professional fees, which are the costs incurred from enlisting the help of experts like an attorney to review the franchise contract or accountants to go through all the numbers.<a href="https://1851franchise.com/how-to-structure-franchise-royalty-fees-2715569">Royalty fees</a> will also be required when purchasing a franchise. These fees are typically paid monthly to the franchisor and are based on a percentage of a franchisee’s revenue. Depending on the franchise concept, these may be as low as 4% or as much as 12% or more. The royalty fee will be collected by the franchisor for the duration of the franchise agreement.Related articles:<ul><li><a href="https://1851franchise.com/can-you-buy-a-franchise-with-no-capital-2717434">Can You Buy a Franchise with No Capital?</a></li><li><a href="https://1851franchise.com/what-is-a-franchise-fee-2717526#:~:text=1851%20Franchise%20Senior%20Writer&amp;text=The%20cost%20of%20a%20concept's,%2450%2C000%20depending%20on%20the%20brand.">What is a Franchise Fee?</a></li><li><a href="https://1851franchise.com/how-much-does-it-cost-to-open-a-franchise-2716258">How Much Does It Cost To Open a Franchise?</a></li></ul>

What Fees Can You Expect When Purchasing a Franchise?

1851 Franchise

When investing in a franchise, prospective owners will need to pay a franchise fee, ongoing royalty fees, professional fees and general startup costs. 

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Pool Scouts

Image of Tiffiny Consoli pool scouts franchisee Raleigh North Carolina Rebecca Monet women franchise

Pool Scouts Trailblazer Tiffiny Consoli Built a $3 Million Franchise on Courage and Connection

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The Cleaning Authority

image of Air Force veteran Dan Schultz opened a franchise with The Cleaning Authority

Omaha Daily Record: Air Force Veteran Starts a New Chapter With The Cleaning Authority

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Layne's Chicken Fingers

Natalie Hurley headshot and Layne's Chicken Fingers restaurant

Hospitality Industry Leader Natalie Hurley Joins Layne’s Chicken Fingers to Support Nationwide Expansion

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HomeTeam Inspection Service

Photo of four HomeTeam Inspection Service team members inspecting exterior of home

How HomeTeam’s Ancillary Services Turn a Single Sale Into Steady, Long-Term Revenue

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Sola Salons

Photo of interior of Sola Salons location

Why a Supercuts Area Developer Bet Big on Sola Salons

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What Fees Can You Expect When Purchasing a Franchise?

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