Franchise costs: entry fee, royalties and investment

By Gijs Bodenstaff · Updated: 2026-10-04

The costs of a franchise consist of one-off items (the entry fee and the investment in your location) and ongoing items (royalties and a marketing contribution on your turnover). A French market study from 2025 covering 21 franchise brands puts the initial fee at typically €20,000 to €45,000 and royalties at mostly 4% to 6% of turnover. That is a French sample: Dutch franchise brands may differ, so always ask for the figures of your own brand.

Which franchise costs make up your investment?

Never look only at the entry fee. The ongoing fees often determine more of your result than the amount you pay at the start. Still exploring? Begin with starting a franchise and the complete step-by-step plan.

Franchise costs by item (French market study 2025, 21 brands)
Cost item	Type	Range	Most common
Initial fee (entry fee)	One-off	€0 to €50,000	€20,000 to €45,000
Royalties	Ongoing	0% to 9% of turnover	4% to 6%
Marketing contribution	Ongoing	0% to 3% of turnover	Varies by brand
Own contribution	One-off	Varies by brand	€25,000 to €150,000
Total investment, mid-market	One-off	€150,000 to €530,000	Varies by sector

What is an entry fee and what do you pay it for?

The entry fee, also called the initial fee or franchise fee, is a one-off payment for access to the franchise system. Think of training beforehand and help with the opening. The range is wide: in the French study from €0 to €50,000. A low entry fee is not automatically cheaper; sometimes the difference lies in higher royalties. So always ask exactly what it covers.

Chart of franchise costs: range of the initial franchise fee from €0 to €50,000, typically €20,000 to €45,000 — Range of the initial fee for franchises according to a French market study from 2025 (21 brands).

How do royalties and the marketing contribution work for franchises?

Royalties are a percentage of your turnover that you pay to the franchisor on an ongoing basis, for the use of the system and the support. The marketing contribution usually goes into a shared fund for national campaigns. How that fund works and what to look out for is explained under the franchisee marketing contribution.

Fictitious worked example: ongoing fees at €480,000 turnover per year
Item	Percentage	Per year	Per month
Royalties	5%	€24,000	€2,000
Marketing contribution	2%	€9,600	€800
Total ongoing	7%	€33,600	€2,800

Why this worked example?

The turnover of €480,000 matches the average turnover per location in services, calculated from NFV figures for 2025. The percentages fall within the French ranges. Replace them with the figures of your own brand.

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Which investments come on top of the fees?

The total investment is more than the entry fee. Also allow for fit-out and renovation, stock, equipment, software, an opening campaign and working capital for the first months. In the French study the total investment in the mid-market was between €150,000 and €530,000, with an own contribution of typically €25,000 to €150,000. How big a role a loan plays is explained under financing for new franchisees. If you take over an existing location, you pay a purchase price instead of a full fit-out; read how buying an existing franchise works.

How do franchise costs differ by sector?

Because royalties are charged on turnover, the sector makes a big difference. At the same percentage you therefore pay a much higher amount in food than in services. In hospitality, an average of 26.8 people also work at each location; read more about starting a hospitality franchise.

Turnover per location (calculated from NFV 2025) and fictitious royalty at 5%
Sector	Turnover per location	Fictitious royalty at 5% per year
Food retail	€2.91m	€145,500
Non-food retail	€1.75m	€87,500
Care	€1.27m	€63,500
Hospitality	€1.23m	€61,500
Other	€0.68m	€34,000
Services	€0.48m	€24,000

When do you earn back the franchise costs?

The French study puts break-even at typically 18 to 24 months. That too is a French sample. For your own plan, work with a cautious turnover and a start-up period in which fixed costs are already running. Ask existing franchisees how long their start-up period lasted.

Which franchise costs should you check before signing?

Under the Dutch Franchise Act, the franchisor must give you information in advance, including on fees and the investments required of you (Articles 7:913 and 7:916 of the Dutch Civil Code). A four-week standstill period then applies before you may sign. Changes to the system with financial consequences above an agreed threshold require franchisee consent (Article 7:921 of the Dutch Civil Code). Have your contract reviewed by a franchise lawyer; this is not legal advice. If you first want to know what a franchise is, read the explanation.

Checklist: costs to ask the franchisor about
Question	Why
What exactly does the entry fee cover?	Training or the opening may be invoiced separately
On which turnover are royalties and the marketing contribution charged?	Determines your monthly costs
Are there mandatory software or purchasing costs?	Fixed costs on top of the fees
Who pays for local marketing per location?	National campaigns do not always cover your own area
What do renewal or termination cost?	Costs at the end of the contract

What does the marketing contribution deliver for your location?

You pay a marketing contribution for visibility. Yet in our Local SEO Benchmark Franchise Ketens 2026, only 40% of 500 Google Business Profiles were fully completed, and 6 out of 100 chains responded to reviews within 24 hours. So ask how the brand handles local marketing for each location. If you are a franchisor and want to organise this better, you can contact us.

Frequently asked questions about franchise costs

What does a franchise cost on average?

There is no reliable Dutch average across all brands. A French market study from 2025 covering 21 brands puts the total investment in the mid-market at €150,000 to €530,000, with an own contribution of typically €25,000 to €150,000. Dutch franchise brands may differ considerably from this.

What is the entry fee for a franchise?

The entry fee is the one-off initial fee you pay the franchisor for access to the system, often including training and help with the opening. In a French market study from 2025 it ranged from €0 to €50,000, typically €20,000 to €45,000. Always ask exactly what it covers.

Are there franchises without an entry fee?

Yes, in the French market study from 2025 the range for the initial fee started at €0. A brand without an entry fee is not automatically cheaper. Sometimes the royalties or mandatory purchasing costs are higher instead. So always compare the total costs over the full term of the contract, not just the start.

What is a royalty in franchising?

A royalty is an ongoing fee you pay as a franchisee to the franchisor for the use of the brand, the system and the support. It is usually a percentage of your turnover. In a French market study from 2025 it ranged from 0% to 9%, mostly 4% to 6%.

Do you pay royalties even if you make no profit?

Usually, yes. Royalties are generally a percentage of your turnover, not of your profit. So even in a month with little or no profit you still pay the fee, just like the marketing contribution. Factor that into your budget and keep a buffer for the start-up period.

How high is the marketing contribution for a franchise?

In a French market study from 2025 covering 21 franchise brands, the marketing contribution ranged from 0% to 3% of turnover. That is a French sample, so Dutch brands may differ. Also ask what the money is spent on: only national campaigns, or local marketing for your own location as well.

What is the difference between own contribution and total investment?

The total investment is everything needed to open your location: entry fee, fit-out, stock and working capital. The own contribution is the part you pay yourself; the rest is usually financed with a loan. How much own contribution a bank asks for varies by bank and by brand.

Must the franchisor disclose the costs in advance?

Yes. Under the Dutch Franchise Act, the franchisor must give you information before signing, including on the fees and the investments required of you. A four-week standstill period then applies. Have your contract reviewed by a franchise lawyer; this is not legal advice.

Can the franchisor increase the costs later?

For changes to the system with financial consequences above an agreed threshold, Article 7:921 of the Dutch Civil Code requires franchisee consent. Which threshold applies is set out in your contract. So check in advance how changes are handled. Have your contract reviewed by a franchise lawyer; this is not legal advice.

How do you compare the costs of two franchise brands?

Put all items side by side: entry fee, royalties, marketing contribution, mandatory purchasing, software and investment. Convert the ongoing percentages into euros using the same cautious turnover. Add everything up over the full contract term. That shows whether a low entry fee ends up costing more than a brand with a higher entry fee.

Sources

Gijs Bodenstaff
Franchise marketer, local SEO and GEO specialist, author

Plug the costs of your brand into the worked example, then see how you can finance the start.