Price your franchise too high and investors walk away; too low and you cannot support them. A practical way to set the entry fee, royalty and marketing fund from your real numbers.
For brand owners
Short answerA fair franchise price starts from the franchisee's unit economics, not from competitors' fees. The entry fee should cover your real cost of recruiting, training and opening a unit; the royalty should fund ongoing support while leaving the franchisee a healthy margin and a realistic payback. If the numbers do not work for the investor, the price is wrong.
Pricing is where many first-time franchisors lose credibility. Investors compare you with roughly 4,000 franchise brands in Türkiye alone, and they will rebuild your numbers before they sign.
1. Start from the franchisee’s numbers
Model one unit: total investment, expected monthly sales, costs, and profit before your fees. Then add your fees and check what is left. A franchisee who cannot earn a fair return and recover the investment in a reasonable time will not stay, and will not recommend you.
2. The entry (initial) fee
The entry fee pays for what you do before the unit opens: selection, site approval, training, opening support and the right to use the brand. Calculate your real cost for these steps and add a margin. A fee far above that cost looks like a sales charge, not a partnership.
3. The royalty
The royalty pays for ongoing value: supervision, updates to the system, supplier terms, new products and brand development. Most brands charge a percentage of sales, some a fixed monthly amount. Choose what your franchisees can track and trust, and write down exactly what support it buys.
4. The marketing fund
A separate marketing contribution builds the brand for everyone. Investors will ask how it is spent and reported. Publish a simple yearly report; transparency here builds more trust than any brochure.
5. Test it before you publish it
- Run a good, average and weak scenario, not only the best one.
- Check the payback period in each scenario.
- Compare with brands in the same sector and market, but do not copy them.
- Make sure every fee is explained in your Investment Summary.
In Saudi Arabia, fees and obligations must also appear in the disclosure document given to the investor at least 14 days before signing.
How we help
In our Franchise Program we build the unit model and fee structure with you, then present it in a clear Investment Summary that investors can check line by line.
Is your fee structure investor-ready?
Take the free readiness check, or talk to us about building your franchise model.
Check your readiness See the Franchise Program →Sources: 7Grounds Franchise Program · UFRAD data via DHA, Sep 2026Updated September 2026 · This article is general information, not legal, tax or investment advice. Figures change; verify with official sources and independent advisors before making decisions. 7Grounds does not guarantee returns.
7Grounds Team
The 7Grounds team in Istanbul: strategists, designers, marketers and franchise and investor specialists working across Türkiye and the Gulf in Arabic, English and Turkish.
