Knowledge Base

Do the franchise management fees increase over time?

Costs
Written by
Sam Stawarz
Published on
June 12, 2023

When determining if a franchise opportunity is right for you, it's important to consider the fees that come with franchising. One of these fees is the management fee, which can be used to cover operating costs. In some cases, the management fee may increase over time as well as other costs associated with running a business.

Yes, the fees usually will increase over time. The amount is usually based on inflation and will increase on an annual basis.

For example:

  • Management Fee = £100. At 5% inflation the new fee would equal £105

So yes, the management fee will usually increase over time, but it's important to note that these fees are often based on the percentage increase in inflation.

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