Franchise fees are one of the big stories of 2017, as they are a major factor in the overall cost of owning a business.
The average franchise fee is $9.30 per month, according to a new report from the National Association of Franchise and Acquisition Executives.
That’s a little less than the average cost of a franchise in the United States, according the latest data from the Bureau of Labor Statistics.
The median fee is just $3.15 per month.
But that doesn’t mean that it’s all bad news.
The study found that many businesses with small operations are able to charge a lower fee than their larger competitors.
Franchise fees vary by region, but a majority of businesses in the Midwest, Southern, and Northeast have average fees lower than the national average.
Franchise Fees per Franchise Year in Franchise Year to date Total Cost in Franchise 2016 $9,749.38 $7,854.08 $932.79 2017 $10,069.60 $7.938.38 5.7% 2018 $10.931.21 $7.,868.67 5.3% 2019 $10.,717.23 $7,,,7,937.07 5.1% 2020 $11,049.88 $7,.943.08 5.0% 2021 $11.051.15 $7 ,,971.25 4.9% 2022 $11.,072.07 $7 .639.89 4.5% The National Association for Franchise and Acquisition Executices (NAFEE) says franchise fees can be a valuable tool to consumers that help them shop and shop less.
The group, which is composed of business leaders, says they have helped consumers reduce the amount of time they spend in stores and spend less on fuel.
“Many businesses are able a little bit to help lower their costs,” said NAFEE CEO David L. Jones in a statement.
“But many of the smaller businesses are often struggling to make ends meet and some of them are not even able to afford their own stores.
Franchisees help those smaller businesses, and those small businesses benefit consumers.”
The NAFIE report, which was released earlier this month, is based on a survey of more than 1,000 franchise owners and managers, who responded to questions related to franchise fees, the overall costs of their businesses, as well as costs of operations and staff.
The survey found that the average franchise fees for the states of California, New Jersey, and Massachusetts are lower than in the rest of the country.
Franchisee Fees for Businesses with less than $100k in Annual Cost of Operating Expenses The survey also found that most businesses with less then $100,000 in annual operating expenses can charge a franchise fee of $3,000 per month (the average fee in the U.S.).
“Small businesses are also often unable to compete with the larger businesses on a consistent basis,” said L.A. City Councilman Mike Bonin, who authored the study.
“These small businesses, like the majority of small businesses nationwide, are struggling to maintain their quality, profitability, and morale.
So, a franchise is a good tool to help keep a small business afloat.”
Franchise fees also vary depending on the franchisee.
According to the survey, a typical franchise fee range is from $7 per month to $12 per month for a business with an annual cost of $100K or less.
Franchise fee ranges are calculated using the following formula: the average annual cost in franchisee fee, divided by the average revenue in the business.
Businesses that are able offer higher levels of franchise fees typically earn higher revenue and profitability.
For example, a business that charges $10 per month or $12 in a year may earn $2.25 in franchise fees or $2,000 annually in revenue.
Franchise Fee Calculations Franchise Fee Amount per Year in Franchises Percentage of Franchise Fee to Cost of Revenue Businesses in the South and West tend to charge more than the rest.
California, the state with the highest number of franchised restaurants, charges the highest franchise fees.
The California Franchise and Restaurant Association estimates that the median franchise fee ranges from $4,764.80 in Los Angeles County to $7 million in San Francisco.
New Jersey and Massachusetts, the states with the lowest number of franchisees, charge the lowest franchise fees at $4.75 per month in San Jose and $6.75 in New York City.
California and Massachusetts charge the highest franchised fees of $5.25 per month and $5,000, respectively.
Franchise Cost of Operations Franchise cost of operations, or FCO, refers to the total revenue the franchise owner receives per month from the business, including the cost of sales and advertising.
FCO can be as low as $500,000 or as high as