What is included in the royalty percentage shown?

The royalty percentage combines the franchise's ongoing royalty rate and required advertising fund contribution. Both are calculated as a percentage of gross revenue and paid throughout the term of the franchise agreement.

Does the year-one total include my startup costs?

No. The year-one total is the franchise fee plus royalty and advertising payments on your projected revenue. It does not include equipment, insurance, vehicle, supplies, or other startup expenses required to launch operations.

What does Item 19 mean in the narrative?

Item 19 is the section of a Franchise Disclosure Document where franchisors may disclose financial performance representations. The note reminds you that any revenue figures represent gross sales, not net profit, and that you must verify current disclosures in the FDD before signing.

Franchise Comparison Matrix

Royalty is forever — Item 19 is not your P&L.

Inputs

Franchise fee budget ($)

Max royalty (%)

Projected gross revenue ($/yr)

Compare upfront franchise fees, ongoing royalty rates, and first-year total costs across cleaning franchise systems using your projected gross revenue. The matrix shows initial fee, combined royalty and advertising percentage, and year-one total outlay for each brand.

Instruction

Enter your franchise fee budget and the maximum royalty percentage you will accept.
Set your projected gross revenue for the first year.
Read the fee, royalty rate, and year-one total for each franchise in the comparison table.

Worked example

A contractor budgets a $10,000 franchise fee, accepts up to 10% royalty, and projects $75,000 gross revenue in year one.

The matrix displays each franchise's initial fee, combined royalty and advertising percentage, and the sum of the franchise fee plus year-one royalty and advertising payments based on the $75,000 revenue figure.

Questions operators ask

What is included in the royalty percentage shown?: The royalty percentage combines the franchise's ongoing royalty rate and required advertising fund contribution. Both are calculated as a percentage of gross revenue and paid throughout the term of the franchise agreement.
Does the year-one total include my startup costs?: No. The year-one total is the franchise fee plus royalty and advertising payments on your projected revenue. It does not include equipment, insurance, vehicle, supplies, or other startup expenses required to launch operations.
What does Item 19 mean in the narrative?: Item 19 is the section of a Franchise Disclosure Document where franchisors may disclose financial performance representations. The note reminds you that any revenue figures represent gross sales, not net profit, and that you must verify current disclosures in the FDD before signing.