Traditional Franchise Model

• $50-90,000  up-front cost to purchase the franchise license.
• 10% monthly fees (based on your total invoice income).
• Compliance standards are strictly enforced.
• Referrals from Corporate website.
• Financial audits to ensure all fees are paid.
• Limited independence.

Owning a franchise is an expensive endeavor that often creates a "success tax." The more you grow and the harder you work, the more you owe the franchisor in monthly fees

Franchising is a model that penalizes your hustle rather than rewarding it. In the first 3 years (based on a business that starts with $120k in annual income and grows a modest 15% per year), your annual fees have grown from around $12,600 a year to over $43,000 per year in year 25. 

Assuming a modest 15% growth, your annual fees in year 10 will be well over $40k. In fact, in 25 years you will have paid in  a total of $1,776,906.54 in monthly fees. 

Name licensing is tremendously less expensive —1% monthly fees rather than 10%.