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
See the full table (17 rows)
| Calculation base | Recording period | Filings | Networks | Median | First to third quartile | Median without KFC and Pizza Hut |
|---|---|---|---|---|---|---|
| Sales or gross revenue | 2009 to 2013 | 195 | 19 | 5.0% | 4.0% to 5.0% | 5.0% |
| Sales or gross revenue | 2014 to 2018 | 119 | 19 | 5.0% | 4.5% to 6.0% | 5.0% |
| Sales or gross revenue | 2019 to 2023 | 229 | 18 | 6.0% | 6.0% to 6.0% | 5.0% |
| Sales or gross revenue | 2024 to 2026 | 30 | 3 | 6.0% | 6.0% to 6.0% | fewer than 5 |
| Room revenue | 2009 to 2013 | 32 | 4 | 4.0% | 4.0% to 4.0% | |
| Room revenue | 2014 to 2018 | 27 | 3 | 4.0% | 3.0% to 4.0% | |
| Room revenue | 2019 to 2023 | 34 | 2 | 3.0% | 2.5% to 3.5% | |
| Sales or net revenue | 2009 to 2013 | 12 | 11 | 5.0% | 5.0% to 7.4% | |
| Sales or net revenue | 2014 to 2018 | 35 | 21 | 6.0% | 4.0% to 6.0% | |
| Sales or net revenue | 2019 to 2023 | 21 | 9 | 6.0% | 4.5% to 6.0% | |
| Sales or net revenue | 2024 to 2026 | 6 | 3 | 6.0% | 6.0% to 8.2% | |
| Licensor in the United States, gross revenue | 2009 to 2013 | 182 | 12 | 5.0% | 4.0% to 5.0% | |
| Licensor in the United States, gross revenue | 2014 to 2018 | 117 | 17 | 5.0% | 4.5% to 6.0% | |
| Licensor in the United States, gross revenue | 2019 to 2023 | 217 | 8 | 6.0% | 6.0% to 6.0% | |
| Licensor in the United States, gross revenue | 2024 to 2026 | 30 | 3 | 6.0% | 6.0% to 6.0% | |
| Licensor in other countries, gross revenue | 2009 to 2013 | 13 | 7 | 5.0% | 2.8% to 10.0% | |
| Licensor in other countries, gross revenue | 2019 to 2023 | 12 | 10 | 4.5% | 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.
| Network | Filings | First period | Median | Last period | Median |
|---|---|---|---|---|---|
| Burger King | 185 | 2009 to 2013 | 5% | 2019 to 2023 | 5% |
| KFC | 110 | 2019 to 2023 | 6% | 2024 to 2026 | 6% |
| Pizza Hut | 100 | 2019 to 2023 | 6% | 2024 to 2026 | 6% |
| Outback | 50 | 2009 to 2013 | 4% | 2014 to 2018 | 4% |
| Dale Carnegie | 27 | 2009 to 2013 | 12% | 2024 to 2026 | 12% |
| Taco Bell | 19 | 2014 to 2018 | 6% | 2019 to 2023 | 6% |
| Applebee's | 10 | 2009 to 2013 | 4% | 2014 to 2018 | 4% |
| TGI Fridays | 9 | 2014 to 2018 | 3.25% | 2019 to 2023 | 3.625% |
| Olive Garden | 7 | 2014 to 2018 | 5% | 2019 to 2023 | 5.5% |
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.
| Year | Filings | Networks | Median |
|---|---|---|---|
| 2009 | 9 | 3 | 5% |
| 2010 | 53 | 7 | 4% |
| 2011 | 32 | 7 | 5% |
| 2012 | 64 | 9 | 5% |
| 2013 | 37 | 6 | 5% |
| 2014 | 29 | 11 | 5.5% |
| 2015 | 16 | 4 | 5% |
| 2016 | 19 | 2 | 5% |
| 2017 | 26 | 8 | 6% |
| 2018 | 29 | 5 | 4.5% |
| 2019 | 32 | 11 | 6% |
| 2020 | 63 | 3 | 6% |
| 2021 | 28 | 7 | 6% |
| 2022 | 50 | 2 | 6% |
| 2023 | 56 | 6 | 6% |
| 2024 | 29 | 3 | 6% |
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.
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)
What the sector paysOther indicators in the same group
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.