Percentage-Based Fee Franchises

Percentage-based fee franchises tie ongoing costs to sales rather than relying mainly on flat recurring charges. In practice, that creates a familiar tradeoff: fees can rise as volume grows, but they may feel more aligned with the day-to-day rhythm of the business. Across this group, the middle of the market sits at a 6.0% royalty and a 2.0% marketing fee, with a median startup investment of $218,900.

The category mix leans heavily toward Food & Beverage, which accounts for 408 brands, but the group is much broader than restaurants alone. Home Services, Business Services, Health & Wellness, Fitness, and Cleaning & Restoration also show up in meaningful numbers. That spread matters because percentage-based fees can look very different in a mobile service operation, a children’s education concept, or a retail food business with a physical storefront.

Scale varies widely here. The median outlet count is 47, which suggests many brands are beyond the earliest startup stage without necessarily being massive systems. At the same time, the examples span everything from smaller concepts such as Urban Wings with 1 outlet and KidzArt LLC with 13, to larger established systems such as Carvel with 375 and Auntie Anne's Registrations with 1193. Startup costs also run from very light to very large, so the fee structure should be weighed alongside the operating model, not in isolation.

A few examples show that range clearly. NHOU is a mobile automotive concept with an initial investment of $40,350 to $95,000, while KidzArt LLC comes in at $23,750 to $37,150 in education and training. By contrast, East of Chicago Pizza ranges from $217,500 to $482,500, Urban Wings from $214,100 to $566,000, Auntie Anne's Registrations from $156,175 to $638,300, and Carvel from $38,800 to $785,850. Some fee figures in individual listings may look unusual, so it helps to read each brand’s disclosures carefully and compare royalty, marketing, and startup requirements together.