Franchise Costs

There are significant benefits to becoming a franchisee. Namely, built-in brand awareness and customer base. It seems to be a safe bet for new entrepreneurs. But before you take the plunge, you must understand that franchise costs are increasing and why it happening… 

The Overall “Cost of Doing Business” is on the Rise

It should be no surprise that it costs more to do anything these days — starting a new business venture included. Over the past year, record-breaking inflation has swept the United States. 

As a result, companies of all sizes have been under pressure to get ahead of it… 


Examples of these costly expenditures include:

  • Paying higher wages to employees
  • Increased food and supply prices
  • Hike in royalty fees

Speaking of which, let’s discuss the ringleader of this royalties spike trend… 

Franchise Costs Follow the Golden Arches Lead…

Some chains — like Subway franchisesoffer incentives for those opening new or multiple locations. However, one of the top franchised restaurants in the world is going in a different direction… 

A CNBC article reported that McDonald’s will be raising their royalty fees for the first time in 30 years!

The new rate will go into effect on January 1, 2024. It will apply to first-time franchisees and those opening additional locations. 


Recently, the burger chain’s franchisees clashed with the corporation over its policies. Subsequently, the additional franchise costs are not sitting well. 

Nonetheless, Mickey D’s is an industry leader. What they do will inevitably be imitated and duplicated. 

But what does that mean for the viability of opening a franchise? 

Are the Franchise Costs Worth It? 

This article is not intended to discount franchises as an option. That being said, you must completely understand how they work first… 

From there, researching the policies and franchise costs for the corporation you’re interested in is key. Expenses, fees, regulations, and so on differ greatly from industry to industry or even region to region. 

So, do your due diligence thoroughly before tackling a franchise — the costs are only going up… 

Be Great,

GCTV Staff

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