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The average initial franchise fee in the U.S. typically ranges from $25,000 to $50,000, although it can be higher or lower depending on the brand, industry, and business model. Some lower-cost franchises may charge fees below $5,000, while more established or premium franchises could have fees exceeding $100,000. Keep in mind, this fee is separate from ongoing royalty fees, which are usually a percentage of gross revenue.
The average royalty fee for franchises in the U.S. typically ranges from 4% to 12% of gross revenue, depending on the franchise brand and industry. Some franchises may have lower royalties, around 3%, while others, especially in industries with higher margins or more established brands, may charge up to 15% or more.
The average franchise system in the U.S. typically has around 100 to 200 units. However, this number can vary significantly depending on the industry, the age of the franchise system, and its growth strategy. Many smaller or newer franchises might have fewer than 50 units, while large, well-established brands can have thousands of units worldwide.
