Hotel Franchise Fee Calculator
Compare franchise fees with the extra revenue a brand may bring, and find the RevPAR uplift you need just to break even.
How to use the free Hotel Franchise Fee Calculator
- Enter your figures in the fields above – use real numbers from your PMS, channel manager or accounts.
- Tap the button to see the result instantly. Change any value to compare scenarios.
- Copy, print or save the result and use it in your daily or monthly review.
This Hotel Franchise Fee Calculator runs fully in your browser on mobile or desktop – no sign-up and nothing is uploaded. Free hotel franchise fee calculator. Enter revenue, royalty, marketing and booking fees and expected RevPAR uplift to see your net gain or loss per year.
Franchise or stay independent?
Joining a hotel brand can bring a recognised name, a loyalty programme, corporate contracts and a central reservation system. It also brings a long list of fees. The only question that matters is whether the extra revenue from the brand is larger than everything you pay for it. This calculator answers that for your own numbers.
Brand fees = Revenue with brand × (Royalty % + Marketing % + Reservation %) + Technology fees
Net gain = Extra revenue − Brand fees − Extra running costs − One-time cost ÷ Contract years
Fees to ask about
- Royalty or franchise fee: a percentage of room revenue, sometimes of total revenue.
- Marketing or brand fund: a percentage for national advertising and the brand website.
- Reservation and loyalty fees: charged per booking, per room night or as a percentage. Loyalty points redeemed at your hotel may be reimbursed at a lower rate than your normal tariff.
- Technology fees: PMS, central reservation system and brand software, usually monthly.
- One-time costs: joining fee, signage and any upgrades the brand needs before opening.
- Brand standards: amenities, uniforms, training and quality audits that raise running costs every year.
The number that decides it
The break-even RevPAR uplift is the minimum rise in revenue per available room the brand must bring just to cover its own cost. If the brand cannot show similar hotels in your market achieving well above this figure, be careful. Check your current RevPAR with the RevPAR calculator, and compare it with what the brand promises.
Before you sign
- Ask for actual results from franchised hotels of your size in your city.
- Read the exit clause and the penalty for leaving early.
- Check how much business will come from the brand's own channels, not OTAs you could reach yourself.
- Look at the effect on your property value with the hotel valuation calculator.
Frequently asked questions
What fees does a hotel franchise charge in India?
Common fees include a royalty, a marketing fee, reservation and loyalty charges, technology fees and a one-time joining fee. Exact rates vary by brand and are set in the franchise agreement.
What is break-even RevPAR uplift?
It is the minimum percentage rise in RevPAR the brand must deliver to cover all its fees and costs. Below this, you earn less than as an independent hotel.
Are franchise fees charged on GST-inclusive revenue?
Agreements usually define revenue excluding taxes, but check the definition in your contract. Fees paid to the brand may also attract GST.
Want a revenue expert to check your numbers?
Get a free OTA, pricing and reputation audit from Revgrow360 — no obligation.