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Franchisees pay fees direct to the Franchisor, who distributes the money as follows:
A set fee, currently around $100 per month, to the Administration Center which answers calls and allocates work.
An advertising fund which must be spent to find Franchisees work.
20% of the total to National (15% if the Franchisor is compliant with the system)
The exact amounts will depend on the level of fees, which vary greatly between Divisions, but they typically net the Franchisor between $200 and $250 per month per Franchisee. Each Division also has minimum National fees, which means a Franchisor will normally require at least two or three Franchisees to break even.
In addition, Franchisors receive 80% of new Franchise sales and 15% of resales.
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