Question: I am looking at investing in a Pest Control Franchise. Could you tell if there is an industry ‘average’ of ‘royalty fees’ that are charges per month by Franchisors? – South East
Answer: The range of monthly service fees varies widely between different types of businesses, depending on turnover, profitability and margins. The fee will also reflect the level and range of services provided by the franchisor.
You will need to speak to the Franchisor and existing franchisees to gain an understanding of what you will receive in return for this fee. There may also be an additional advertising / marketing fee. Again your research should determine if this is the case.
There is no industry average as such but whilst carrying out your research it may be useful to find out what other franchisors in your chosen sector are charging to enable you to make a comparison. – Cathryn Hayes
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