Benchmarking 2021: Franchise Fees Were Mostly Unchanged
November 17, 2021 – Almost two-thirds (64.9%) of active U.S. franchisors surveyed by Franchise Insights in November, 2021 reported no changes to their fees in 2021. Exactly one-third (33.3%) increased fees in 2021, and a small percentage (1.75%) actually reduced their initial franchise fees this past year.
More franchises increased their fees by more than 50% (1.8%) than reduced them (1.75%). All of the franchises increasing at that level had 11-75 units in 2021, clearly in the high growth phase of franchise development.
NOTE: Franchisors who participated in the survey will receive a copy of the in-depth benchmarking report with the 2022 forecast of franchise fees. To receive a free copy, active franchisors can participate in our quick and confidential poll.
The next chart presents the 2021 franchise fee increases in bars for easy comparison.
Those increasing fees did so in the face of a global pandemic, likely buoyed by very strong franchise interest as seen in our monthly surveys of startup sentiment. Download a copy of the full October 2021 Small Business Startup Sentiment Index™report here. See excerpts from prior SSI™ surveys and subscribe to receive the Small Business Startup Sentiment Index™ monthly report when it is released.
Franchises responding to the benchmarking survey hailed from a representative spectrum of categories and system sizes as seen in the following charts.
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Published on Wednesday, November 17th, 2021.