Franchise Royalty & Fee Benchmarker
Lower isn't always better — weigh the fee against the support and marketing reach you receive.
Why use this tool?
Royalty and marketing fees vary widely between systems, and a couple of percentage points compounds into tens of thousands of dollars a year. Franchisors rarely tell you how their fees compare to the category. This tool benchmarks a brand's royalty and marketing levy against the Fee Index median for its category and converts the gap into real dollars on your revenue.
Who uses the Royalty & Fee Benchmarker?
- Prospective franchisees — sanity-checking whether a brand's fees are fair for its category.
- Franchisees at renewal — seeing how their fee load compares before re-signing.
- Advisers & brokers — flagging above-market fees during due diligence.
- Multi-brand operators — comparing fee structures across systems they're considering.
How to use it
Benchmark a franchise's fees in three steps:
- Choose the category. Select the franchise's category to load the median royalty and marketing levy from the Fee Index.
- Enter the brand's fees. Add the specific brand's royalty percentage and marketing levy from its disclosure document.
- Add your projected sales. Enter expected annual revenue. The tool shows total fee % vs the median and the annual dollar difference, above or below market.
Frequently asked questions
What is a normal franchise royalty rate in Australia?
Most Australian franchise royalties fall between about 5% and 9% of gross sales, with a marketing levy of roughly 1–4% on top. Home-based and service systems often use a fixed monthly fee instead. Category medians are published in the Australian Franchise Fee Index.
What is the difference between a royalty and a marketing levy?
The royalty is your payment for using the system, brand and ongoing support. The marketing (or brand-fund) levy is pooled to fund national and regional advertising. Both are usually charged as a percentage of gross sales, so they cost more as you grow.
Are lower franchise fees always better?
Not necessarily — very low fees can mean thin franchisor support. What matters is value for the fee: training, marketing reach, systems and field support. Benchmark the fee against the category, then ask what you get for it.
How much do franchise fees add up to over time?
At a combined 10% of sales on $600,000 revenue, fees are about $60,000 a year — $300,000 over a five-year term. A brand 2 points above the median costs an extra ~$12,000 a year, which this tool quantifies for your revenue.
Where do the median fees come from?
The category medians are drawn from the quarterly Australian Franchise Fee Index, which benchmarks fees across Australian systems. Enter a brand's actual fees from its disclosure document to compare.