AVERAGE

ROYALTY
Table1: Average Royalty Percentage by Industry
INDUSTRY PERCENTAGE
Sample Definition: Active franchise systems with percentage-
Automotive 6.1% based ongoing fees. Where a minimum-maximum percentage
Baked Goods 5.2% was given, the average the range was used.
Sample Size: 1,342 systems
Building & Construction 5.6%
Business Services 11.9%
Child-Related 6.3%
Education-Related 8.3%
Fast Food 5.1%
Lodging 4.6%
Maintenance Services 6.9%
Personnel Services 12.5%
Printing 5.4%
Real Estate 7.4%
Restaurants 4.6%
Retail Food 6.2%
Retail 6.1%
Service Businesses 6.1%
Sports & Recreation 6.6%
Travel 5.6%
TOTAL 6.7%

Royalty Fee Requirement Definitions

300
Fixed Percentage
Min-Max Percent Range
250
Other
200

150

100

50

0
Building & Construction
Automotive

Baked Goods

Business Services

Service Businesses

Sports & Recreation

Child-Related

Fast Food

Printing

Real Estate

Retail Food
Lodging

Retail

Travel
Personnel Services
Education-Related

Maintenance Services

Restaurants

Chart 1: Royalty Fee Requirement Definitions

Sample Definition: Active franchise systems with percentage-based ongoing fees.
Sample Size: 1,342 systems