All indicators

What the sector pays

Median royalty in franchise contracts went from 5% to 6% since 2009, and without KFC and Pizza Hut remains at 5%

Median royalty on sales or gross revenue, from the 2009 to 2013 period to the 2019 to 2023 period, in 573 filings at INPI

Calculated on November 8, 2026 · 573 filings from 43 networks, on a sales or gross revenue base

5% to 6%median royalty on sales or gross revenue, from the 2009 to 2013 period to the 2019 to 2023 period
Median royalty in franchise contracts went from 5% to 6% since 2009, and without KFC and Pizza Hut remains at 5%in %
0%2%4%6%8%2009 to 20112012 to 20142015 to 20172018 to 20202021 to 20236%0%2%4%6%8%2009 to 20112015 to 20172021 to 20236%
All networksWithout KFC and Pizza Hut
7 of 9Networks with the same median in two or more periods
68.1%Filings with 5% or 6%
5.5% and 5.0%United States and United Kingdom, medians
4.0% and 3.0%Hospitality, on room revenue, 2009 to 2013 and 2019 to 2023
See the full table (17 rows)
Calculation baseRecording periodFilingsNetworksMedianFirst to third quartileMedian without KFC and Pizza Hut
Sales or gross revenue2009 to 2013195195.0%4.0% to 5.0%5.0%
Sales or gross revenue2014 to 2018119195.0%4.5% to 6.0%5.0%
Sales or gross revenue2019 to 2023229186.0%6.0% to 6.0%5.0%
Sales or gross revenue2024 to 20263036.0%6.0% to 6.0%fewer than 5
Room revenue2009 to 20133244.0%4.0% to 4.0%
Room revenue2014 to 20182734.0%3.0% to 4.0%
Room revenue2019 to 20233423.0%2.5% to 3.5%
Sales or net revenue2009 to 201312115.0%5.0% to 7.4%
Sales or net revenue2014 to 201835216.0%4.0% to 6.0%
Sales or net revenue2019 to 20232196.0%4.5% to 6.0%
Sales or net revenue2024 to 2026636.0%6.0% to 8.2%
Licensor in the United States, gross revenue2009 to 2013182125.0%4.0% to 5.0%
Licensor in the United States, gross revenue2014 to 2018117175.0%4.5% to 6.0%
Licensor in the United States, gross revenue2019 to 202321786.0%6.0% to 6.0%
Licensor in the United States, gross revenue2024 to 20263036.0%6.0% to 6.0%
Licensor in other countries, gross revenue2009 to 20131375.0%2.8% to 10.0%
Licensor in other countries, gross revenue2019 to 202312104.5%3.6% to 5.0%

Median within each networkNetworks with five or more filings on sales or gross revenue and presence in two or more periods, from the first to the last period with data.

NetworkFilingsFirst periodMedianLast periodMedian
Burger King1852009 to 20135%2019 to 20235%
KFC1102019 to 20236%2024 to 20266%
Pizza Hut1002019 to 20236%2024 to 20266%
Outback502009 to 20134%2014 to 20184%
Dale Carnegie272009 to 201312%2024 to 202612%
Taco Bell192014 to 20186%2019 to 20236%
Applebee's102009 to 20134%2014 to 20184%
TGI Fridays92014 to 20183.25%2019 to 20233.625%
Olive Garden72014 to 20185%2019 to 20235.5%

Median by yearFilings on sales or gross revenue by year of recording, with a year published from 5 filings onward. In years with few networks, the median describes few franchisors.

YearFilingsNetworksMedian
2009935%
20105374%
20113275%
20126495%
20133765%
201429115.5%
20151645%
20161925%
20172686%
20182954.5%
201932116%
20206336%
20212876%
20225026%
20235666%
20242936%

The royalty stated in the certificates of INPI (the national industrial property institute) makes it possible to track, through the first recording of each filing, whether the contracted percentage changed over time. Because different calculation bases cannot be added together, the series uses only unit contracts on sales or gross revenue, outside the hospitality sector, which brings together 573 filings from 43 networks. The median was 5% from 2009 to 2013, 5% from 2014 to 2018 and 6% from 2019 to 2023, and 68.1% of the filings state exactly 5% or 6%.

The rise in the median results from the composition of the records. KFC and Pizza Hut, both at 6%, enter this base in 2019 and account for 79.9% of the filings from 2019 to 2023. Without the two, the median stays at 5% from 2009 to 2013 and at 5% from 2019 to 2023. Of the 9 networks with five or more filings on this base and presence in two or more periods, 7 keep the same median, with Burger King at 5%, KFC at 6%, Pizza Hut at 6%, Outback at 4%, Dale Carnegie at 12%, Taco Bell at 6% and Applebee's at 4%, and the others vary by up to 0.5 percentage point, with TGI Fridays going from 3.25% to 3.625% and Olive Garden from 5% to 5.5%. Within the same filing, 18 of the 266 with more than one certificate changed the percentage, 14 downward and 4 upward.

By country, only the United States, the United Kingdom and Brazil reach five filings on this base, with medians of 5.5% in 546 filings, 5% in 12 and 2.625% in 6, and the other countries combined stand at 10%, in 9 filings. Licensors outside the United States went from 5% in the 2009 to 2013 period to 4.5% in the 2019 to 2023 period, without the rise observed in the set as a whole. By segment, food stands at 5%, with 516 filings, and education and training at 12%, with 34. A different movement appears on another base, room revenue, whose median fell from 4% in the 2009 to 2013 period to 3% in the 2019 to 2023 period, with Wyndham, the largest network on this base, going from 4% to 3%.

How we calculate

We read the percentage and the calculation base in the royalty item of the franchise certificates themselves, in INPI's open data, file of September 2026, and discarded advertising, renewal and percentages on fees or royalties charged to sub-franchisees. Each filing enters once, with the first certificate that states a percentage, because a line in the file is a recording and not a contract, and the period follows the year of publication of that certificate. Where there are ranges, the highest declared percentage applies. The main series is restricted to sales or gross revenue, without master franchises and without hospitality. Room revenue, net revenue and unspecified revenue are calculated separately, and the 12 filings that cite two bases are not included. The subset on this page reaches 5.5% across 573 filings, the same headline figure as the royalties in contracts indicator, which also presents the other calculation bases. We publish only aggregates with five or more filings, in accordance with INPI's license.

Calculated on November 8, 2026. Method version 1.0. Sample: 573 filings from 43 networks, on a sales or gross revenue base.

What this figure does not show

  • Registration is optional and concentrated on foreign franchisors and on networks that record contract by contract, so the series describes who approached INPI in each period and not Brazilian franchising.
  • The series does not follow the same contracts. Networks enter and leave, and the drop in recordings after 2023 reduces the most recent period, with 30 filings from 3 networks.
  • Certificates prior to 2009 do not include values in the text, which limits the series to just over 15 years.
  • The median by country reflects few networks outside the United States, and Brazil has 6 filings on this base because the 118 from Rio Doce state unspecified revenue, at 1%, and fall on another base.
  • The reading of the item is automated and may fail on atypical texts, and percentages that step up by year or by revenue are represented by the highest value.
  • The royalty is not the franchisee's total cost, which includes advertising, the initial fee and other transfers.

Frequently asked questions

Have franchise royalties increased in recent years?

The median in contracts recorded at INPI (the national industrial property institute) went from 5% in the 2009 to 2013 period to 6% in the 2019 to 2023 period, on sales or gross revenue, but the increase comes from the entry of KFC and Pizza Hut into the records. Without the two, the median remains at 5%, and 7 of 9 tracked networks kept the same percentage.

Do American franchises charge higher royalties than European franchises?

On sales or gross revenue, the median is 5.5% in filings with a licensor in the United States and 5% in those from the United Kingdom, the European country that reaches five filings on this base. The comparison reflects few networks outside the United States.

What is the royalty for a hotel franchise?

On room revenue, the median fell from 4% in the 2009 to 2013 period to 3% in the 2019 to 2023 period, in hospitality contracts recorded at INPI (the national industrial property institute).

Report an error on this page (in Portuguese)

Maintained by Marktech, which serves franchise networks and franchises. The brands cited belong to their owners and are mentioned here only to identify the network the data refers to.