Revenue Model · No. 85
IP Franchising for Small Firms
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The Verdict
Good money. It leans on you to make it.
Quick Facts
| Best-Fit Founder | Established IP owner |
|---|---|
| Revenue Type | Recurring |
| Capacity Level | Moderate lift |
| Archetype | Lucrative Job (High Return · High Cost) |
| Evidence Tier | Modeled |
What This Revenue Model Is
A consultant with a methodology so good that other practitioners keep asking 'how do you do that?' is giving that answer away in conversations and free calls, when what those practitioners actually want is a system they can build their own business on. The admiration is already the market. The franchise is how you monetise it properly.
Franchise-style royalties, sized for small firms.
4-8%
ongoing royalty
$20K-50K
entry, anchor
recurring
revenue
You let small firms operate under your brand and system for an entry fee and an ongoing royalty. Supporting many small licensees is heavy work, which is why this scores highest on cost in the category.
Franchise royalties of 4% to 8% of gross and entry fees of $20,000 to $50,000 anchor the model.
Benchmarked to 2025-2026 franchise data (SBA, FRANdata, franchise FDD reviews). This structure can trigger franchise law; legal review is not optional.
Evidence tier: Modeled. Figures are modeled estimates, not observed results. Ranges are illustrations of how the model prices, not predictions of your results.
The Two-Axis Placement
Return score: 4.2 / 10. Personal Cost score: 3.2 / 10. That combination places this model in the Lucrative Job quadrant: high return · high cost.
AssetHigh return, low personal cost
Lucrative JobHigh return, high personal cost
TrickleLow return, low personal cost
TrapLow return, high personal cost
Score Breakdown
Return
Personal Cost
Related Revenue Models
Family page: Licensing Model
Could this model work in your business?
That depends on what your business can absorb and execute. The Membership begins with a Growth Decision that answers exactly that.