Mark up in franchising

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Mark up (%) = (Selling Price – Cost) / Cost × 100

For example, if a product costs 20 euros and you want to sell it for 30 euros, the calculation will be:

Mark up = (30 – 20) / 20 × 100 = 50%

This means that 50% of the final price is profit margin above cost. However, it is important to also consider other factors, such as overheads, variable costs and market trends, to determine a sustainable and strategic mark up.

A common mistake is to confuse markup with profit 99 acres data margin. Although they are related, the margin is the percentage calculated on the selling price, while the markup is calculated on the cost of the product.


In franchising , mark up plays a crucial role for both the parent company and the franchisees . A well thought out strategy can determine the success of the entire network, while mistakes at this stage can lead to sustainability problems.