A Management Service Charge (or MSC as we call it at Signs Express) is a monthly payment in return for your continued use of the franchisor’s brand during your franchise term, plus access to support across various disciplines and the use of the franchisor’s operating systems.
Typically calculated as a percentage of your monthly turnover, the rate can vary significantly between franchises and again across different industries. According to the BFA’s 2025 Franchise Benchmark data, MSC rates can vary hugely between 2 and 25%, with 8% being the average. At Signs Express for example, our MSC is set at 7.5%, which reduces under a tiered fee structure starting when you reach £500,000 – so as your turnover grows your MSC rate reduces.
The more important question to ask however, is not just how much it costs, but rather: what value am I receiving in return, and how can I maximise my return on investment (ROI)?
When doing your due diligence, a franchisor should be open about the support on offer and it is important to understand the tools and resources available to you throughout your franchising career, not just at the start. A good franchisor should offer you support and guidance at all stages of your journey, tailored to your business needs at any given time.
What to look out for?
- How many support staff are at the Head Office/Support Centre? (BFA’s 2025 Franchise Benchmark data shows that a franchisor with between 26 and 100 franchisees on average has 12 employees)
- Is the support team UK based? Can you easily get in touch with them?
- Does the franchise offer initial training, onboarding, ongoing support and exit support?
- Does the franchise have a clear strategy and is everyone aligned on business goals?
- Have you met the team behind the support and are there social opportunities to build relationships?
At Signs Express, as an established franchise, we have just under 60 franchisees which puts us in the BFA category mentioned above, however with support and development at the forefront of all we do, our Franchise Support Centre/Head Office is well above the industry average, with a team of 20 based in Norfolk (and dotted around the country), as we see the value our team can make to the network.
Owning a small business can be challenging, isolating and the franchisee often has to wear many hats. Allowing our franchisees the chance to focus on business growth, development and excellent customer service, our Franchise Support team are on hand to take away some of those pain points and act as an extension of our franchisee’s teams. It is, however, important to note that franchise support is exactly that, it is support. The success of your business is still ultimately down to you as the individual.
Whilst there are many benefits to franchising in terms of brand, group buying power, training, a proven business model, national coverage, etc. the list goes on… A way to often consider the value of your MSC, is the equivalent of paying the salary of an extra team member. Whilst you could do this across individual disciplines, a franchisors support team will consist of multi-disciplined experts, with years of experience, making it hard to replicate with just one employee.
It is vital to remember that your franchisor wants you to succeed and all their tools are there to support you and your business growth; you pay your MSC for a reason. Your franchisor wants to hear from you, they want your constructive feedback, and they want you to use the tools they provide. So, please use it!
All support will vary, however at Signs Express we offer the following, which is available to all franchisees, no matter where they are in their journey.
Training & Support
- Three-week intensive training for new franchisees
- Ongoing training via our custom-built Learning Management System with 80+ courses and growing
- Dedicated Franchise Support Centre offering guidance across operations, finance, IT, marketing, sales, recruitment, and more
- Regular centre visits and 1-2-1 business coaching, mentoring, and buddy systems
- Business Health Checks and departmental (sales, ops, IT, marketing) audits
Marketing & Sales
- Local Marketing Programme: innovative, consistent, done-for-you local campaigns
- National and regional lead generation
- Extensive sales and marketing materials, including bespoke videos and tailored campaigns
- Custom-built website with local franchisee access
- Network-wide social media platform for idea sharing and Q&A
Collaboration & Events
- Year-round networking events
- Best practice sharing from franchisees and supplier partners
Operations & Growth
- Ongoing system developments and investments for a forward-thinking approach
- Preferred supplier discounts through group purchasing power
- Health & Safety and insurance compliance support
- New product development and sustainability initiatives
- Staff recruitment and team structuring assistance
- Expansion and exit planning support when the time is right for you
Our advice as always, is do your research, do your due diligence, consider franchisee retention rates and get to know the franchisor and your future support team. With an average franchisee tenure of 15 plus years at Signs Express, we are lucky to have built a strong network through relationships and collaboration and long-lasting friendships over the last 35 years.
When you embrace the support behind the service charge, you are not just paying a fee – you are investing in your franchise’s future success.
This article comes courtesy of Signs Express, the UK and Ireland’s largest signs and graphics franchise offering bespoke solutions to customer for over 35 years.
