Franchise Royalty & Fee Calculator
Estimate your true ongoing cost of being a franchisee—royalty, ad fund, and fixed fees—in dollars and as a percentage of gross revenue.
Reviewing a franchise offering? Start with the Franchise Disclosure Document guide to find the fees that matter.
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How to use this franchise fee calculator
- Enter your projected annual gross revenue for the location.
- Set the royalty rate and the advertising/marketing fund rate (both as a % of gross).
- Add any other fixed monthly fees (technology, POS, software) and compare opportunities using the same assumptions.
For the most reliable estimate, pull the exact rates and fee definitions from Items 5, 6, and 11 of the franchisor's FDD.
Franchise fee checklist
- Royalty basis: Is it a % of gross sales, a flat fee, or a minimum—whichever is greater?
- Ad fund: Is there a national fund and a separate local-marketing minimum?
- Tiered rates: Do the rates change as sales grow or over the term?
- Fixed fees: Technology, POS, software, and required-purchase fees that hit every month.
- “Gross sales” definition: What is included, and are any items excluded from the royalty base?
See common franchise-agreement language in the Clause Library.
Franchise fee calculator FAQs
BizLeaseCheck provides informational, educational analysis and is not legal advice.