If you’re considering joining an HR franchise, one of the first things you’ll likely come across is the topic of franchise fees. For many people new to franchising, this can raise a lot of questions. What exactly are you paying for? How do these fees vary? And most importantly, how do you know whether the investment is worth it?
In this article, we’ll take a closer look at HR franchise fees, what they typically include, and how to assess whether you’re getting good value for your money. It’s not just about the numbers – it’s about the support, resources, and long-term potential they represent.
What are HR franchise fees?
Franchise fees are the costs associated with joining a franchise network. In the context of HR consultancy, these fees are usually broken into two categories: an initial franchise fee and ongoing fees. Both serve different purposes and fund different aspects of the support and services you receive as a franchisee.
Initial franchise fee
This is the upfront payment made when you join the franchise. It usually covers the cost of getting you set up and includes access to training, initial marketing materials, tools, and the rights to operate under the franchise brand.
Ongoing fees
These can be monthly or based on your earnings (for example, a percentage of revenue). Ongoing fees fund continued support, systems maintenance, marketing, coaching, and development of new tools or services to help you grow your consultancy.
Not all franchises structure these in the same way, so it’s important to understand the details and ask questions to get clarity.
What do you get for your investment?
You’re not just paying to use a brand name. A good HR franchise will offer a wide range of value-added services that can significantly boost your success and confidence, especially during those crucial early months. Here’s what you can typically expect in return for HR franchise fees:
Tailored training and induction
Starting a consultancy – whether you’re going independent or joining a franchise – comes with a steep learning curve. Most established HR franchises offer structured, tailored induction training to prepare you for life as a consultant. This might include employment law refreshers, marketing strategies, business development advice, and practice in how to price and package your services.
Some may also offer specific pre-launch programmes and post-launch support phases to help you ease into running your business with confidence.
Ongoing professional support
After the initial training is complete, ongoing support becomes even more important. You should expect regular check-ins, access to expert advice on tricky client queries, and help with strategic decisions as your consultancy grows.
Whether it’s HR-specific technical guidance or support with business planning and client relationship management, having someone to call on can make a big difference – especially when you’re working solo.
Brand credibility and marketing assets
Joining an established HR franchise means you’re tapping into a brand with a reputation. That recognition can help you win business faster, as potential clients may already associate the brand with professionalism, quality, and reliability.
You’ll also typically get ready-made marketing tools, such as branded templates, website content, social media guidance, and promotional materials. These save a huge amount of time and effort and mean you can hit the ground running with a consistent, professional image.
Peer community
Running your own consultancy doesn’t have to mean working in isolation. Many HR franchises offer access to a network of other consultants, often through forums, WhatsApp groups, regular meetings or virtual catch-ups. This peer support can be a lifeline when you need a second opinion, a boost of motivation, or just someone who ‘gets it’.
Business development and lead generation
Some franchises actively help with lead generation or marketing to potential clients, either centrally or by supporting your local activity. Even if leads aren’t guaranteed, having guidance on what works (and what doesn’t) can make your business development efforts far more effective.
Tools, templates and time-savers
HR franchises often provide a library of tools, templates, and resources you can use with your clients. These might include contracts, policies, letters, forms, checklists, and even full toolkits for complex projects. Having high-quality, regularly updated resources at your fingertips saves hours of work and ensures you’re delivering best-practice advice every time.
How to assess whether the fees are worth it
When comparing HR franchise fees, it’s easy to focus on the numbers – but it’s more important to focus on the value. Ask yourself:
- How much would it cost (in time and money) to do all of this myself?
- What support will I receive to get clients and generate income?
- How long is it likely to take to start earning, and how does the franchise help accelerate that?
- What level of personal support will I get – and from who?
- Will I be part of a community, or essentially on my own?
- Are there any hidden costs not included in the franchise fee?
A lower upfront fee may seem attractive, but if it comes with limited training or support, you could find yourself struggling later. On the other hand, a slightly higher investment that includes comprehensive guidance and high-quality tools might offer far better long-term value and a faster route to profitability.
HR franchise fees: an investment, not a cost
Thinking of HR franchise fees as an investment rather than a cost can help reframe your decision-making. Like any investment, you should expect a return – but that return might come in the form of speed, confidence, fewer mistakes, a stronger client base, or greater work-life balance.
What you’re ultimately investing in is your own success, and the right franchise should be just as committed to that as you are.
Ready to explore what’s included in our franchise model?
If you’re curious about how face2faceHR could support your move into consultancy, we’d love to tell you more. Download our prospectus for all the details or get in touch for a friendly, informal chat. We’re always happy to answer questions and help you work out whether it’s the right fit for you.