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What are the fees and costs of a franchise?


There can be a lot to take in when researching the right franchise business for you.

It can be overwhelming and exciting at the same time.

One thing that is worth checking out are the fees that are involved with the franchise you are researching and looking at buying.

Here are some tips on what questions to ask to help you get the information you need to make the right decision.

What are the costs to join a franchise?

Licence fee/joining fee:

  • How much do you expect to pay outright when you purchase your franchise?
  • What is the licence fee involved with becoming a franchisee of the brand?

Business setup:

  • How much will it cost to buy the equipment needed for the business?
  • How much will it cost to fit out the shop (if it’s a retail business)?
  • How much does signage and uniforms cost?
  • What training is involved? How much does it cost for the training?
  • What products do I need for the business?
  • How much will the lease cost on the vehicle/shop?
  • Do I need staff? What is the cost to hire staff?

What are the ongoing costs involved with the franchise business?

What ongoing fees will I have to pay? Are there monthly flat fees, or is it a fee per lead or do you pay a percentage of turnover?

Some franchise brands charge franchise fees based on the amount of money you make in your business. This means that if you earn more in a month you pay more or if you have a month where you earn less, you pay less.

Other brands charge their fees based on a cost per lead structure. This means that every lead that the franchise brand gives to your business you are charged an amount even if you don’t win the job from that lead.

Brands like V.I.P. charge monthly fees based on a flat fee structure. This means that the franchisees can work as little or as much as they like and still pay the same amount each month. This makes it easier to manage the business as the fess are the same each month.

What are the ongoing maintenance costs?

  • How much will staffing cost?
  • How often will I need to service my equipment?
  • How much does servicing my equipment cost?
  • How much will ongoing costs such as stationary, uniforms, products etc. be?

If you are looking into the purchase of a franchise business, we are happy to help you on your journey. We know it can feel daunting, but it doesn’t have to be – we’re here to help.

Simply call 13 26 13 to speak to one of our team members.

We wish you all the best for your journey into franchising.

Make that change! Contact us to learn more about having your own V.I.P. franchise.