The initial franchise fees for single unit franchise range from 1 PLN for the new franchisors entering the market up to 130 k PLN for well established, reputable franchisors like McDonald’s. However, the latter seems to be the exception to the rule. Generally, initial franchise fees range from several to several thousand PLN.
Continuing fees charged by franchisors are, on average, on the level of 5% of a franchisee’s net income. However, it often happens, particularly in product distribution franchising systems that both initial and continuing franchise fees are incorporated in the price of goods delivered by the franchisor to the franchisee. Such treatment allows for potential franchisees that have insufficient initial capital to buy the franchise, and concurrently excludes any dispute over whether or not the amount of franchise fees is justified.
Polish law does not impose any caps on the initial or continuing fees that may be charged by franchisors to franchisees. Fee payments are tax-deductible for franchisees.