Franchise fees don’t have to be confusing. Learn everything from initial fees, royalty fees, and more. See where your money goes and how it grows your business.

Initial franchise fees vary, depending on the industry and the brand. Know what you are paying for before you buy.


Not to be confused with the total upfront investment, the initial franchise fee is a one-time payment made to the franchisor upon signing of the Franchise Agreement. Depending on the company, sometimes this information is upfront and readily available on their websites. Otherwise, it will be shared in the Financial Disclosure Document (FDD).

Initial franchise fees vary, depending on the industry and the brand. These fees, typically collected in a lump sum payment when the franchise agreement is signed, allow franchisees to license the brand name and gain access to the organization’s unique methods and intellectual property. A common misconception is that franchise fees simply pay for the use of a brand’s name. With the best franchisors, your investment covers training, site selection assistance, marketing, and operational support as you prepare to open your business.

Research shows an interesting correlation between franchise fees and revenue. Brands that charge higher initial franchise fees realize 2.5 times more revenue than those that charge lower buy-ins. And the higher potential for revenue, the more franchisees are willing to pay a higher franchise fee.


The right franchisor will be dedicated to training and preparing you and your team to run your business with confidence and finesse. With Home Franchise Concepts (HFC) brands, the support program implements both comprehensive initial training and ongoing support.

HFC is pleased to provide all franchisees access to an expert team operating at the top of their game within the multi-billion-dollar home services industry, ensuring that every dollar you invest into your new venture is well allocated to the growth of the brand and your business.

This broad-spectrum approach ensures that you will have all the tools you need to run your business successfully while buoyed by the knowledge that if any challenges arise, expert assistance from your franchisor is always available to you.


In addition to an initial franchise fee and other pertinent costs associated with starting your new business, franchise royalty fees are paid on an ongoing basis. These fees are typically drawn as a percentage of weekly or monthly sales, but may also be a flat, scheduled fee.

In addition to the royalty fee, an advertising fee is also paid to the franchisor on an agreed upon schedule to support advertising or marketing efforts on your behalf. This may be called an advertising fee, marketing fee, brand fund fee, etc., but the basic function is the same: to support promotion of the brand systemwide.


Franchisors typically require an ongoing marketing royalty to be paid in exchange for services rendered. For prospective business owners still debating whether to open their own independent store or invest with a franchise, the level of marketing expertise and involvement is an undeniable benefit provided by the latter. Marketing is crucial to the success of any modern business, and a franchisor employs a team of experts, complex marketing tools, and ongoing campaigns that allow you to focus on running your business instead of worrying about attracting customers.

Any initial and ongoing fees you spend on marketing as a franchisee with one of HFC’s award-winning brands essentially get invested back into your local market in order to promote your business, as well as maintain a strong digital presence and reach a broad customer base.


When you invest in a franchise with Home Franchise Concepts, you will have access to a broad network of suppliers, fabricators, and vendors, not to mention the in-house management leaders who are just as invested in your success as you are.

As one of the nation’s foremost home improvement brand families, Home Franchise Concepts strives to provide the highest level of quality, customer service, and franchisee satisfaction. To learn more about how the HFC family of brands can work for you, fill out our contact form today.