When considering a franchise, it’s important to understand the fees involved and what they actually cover. Every franchise, whether it’s a global brand like Chick-fil-A or McDonald’s, or an expanding brand like Cork & Candles, has a few standard fees that keep the business running smoothly and maintain brand consistency.
The two primary fees are the royalty and the brand fund (sometimes called a marketing fund). These are typically calculated as a percentage of revenue and can be paid weekly or monthly. For example, if the royalty is 7% and a location earns $1,000 in revenue for a given period, the franchisee would pay $70.
What the Fees Cover
Royalty Fee
The royalty fee compensates the franchisor for the work and infrastructure they’ve developed to make the business “franchisable.” This includes everything from training programs and operational guidance to proprietary systems and ongoing support.
Brand Fund
The brand fund is often a smaller percentage of revenue and exists to maintain brand consistency across all locations. Many franchise candidates have questions about this fund, so it’s worth elaborating. The brand fund covers marketing materials for campaigns, in-store marketing, special events, promotions, and advertising. Whether it’s weekly, monthly, or seasonal support, the franchisor utilizes the brand fund to provide both physical and digital marketing materials that support companywide and local campaigns. Its main goal is to ensure a consistent, unified brand image while helping each franchisee effectively engage customers.
Many franchises also include additional fees, such as technology fees, which support the systems all franchisees use. For example, at Cork & Candles, franchisees use shared tools like Toast for point of sale, Mailchimp for email communications, and Microsoft email accounts. These systems allow for consistent operations and data sharing across all locations, helping every store succeed.
The Big Picture
Overall, the core fees you can expect are the royalty, the brand fund, and sometimes a technology fee. Other franchises may have additional fees, but these three are the foundations of most franchise agreements. Understanding these costs, and the value they bring, is a key step in evaluating any franchise opportunity.
By contributing to these funds, franchisees gain access to proven systems, ongoing support, and a network of peers, all of which help ensure the business can thrive from day one.
Interested in Franchising with Cork & Candles?
If you’re curious about franchising with Cork & Candles or simply have questions about what it takes to become a franchisee, click on the button below to fill out the brief questionnaire on our website to get started! For insights on franchising and the Cork & Candles experience, follow our franchisor Instagram @corkandcandles.