How much does a neighborhood print magazine franchise cost to run?
Short answer
In one franchisee's numbers I heard, printing and mailing ran about $7 per magazine, roughly $12,000 a month regardless of revenue, plus a franchise fee of 15% of ad sales. Another franchise network requires about $10,000 in monthly ad sales before anything prints. A digital local brand's costs are near zero by comparison.
I met a franchise magazine operator at a networking group, and her numbers stuck with me. Just printing and mailing costs $7 per magazine. On a monthly magazine that's somewhere around $12,000 out the door, regardless of how much money you make.
What are the costs, line by line?
These are one franchisee's numbers as she described them to me, so treat them as one data point:
| Item | Number |
|---|---|
| Print and mail, per copy | about $7 |
| Monthly print and mail cost | about $12,000 |
| Franchise fee | 15% of ad revenue (you keep 85%) |
| Homes in one of her neighborhoods | about 1,800 |
That last number matters as much as the cost. A neighborhood of 1,800 homes caps how many advertisers will care, not just how many people read it.
A different franchisee in another magazine network told me (numbers not exact) that you have to sell about $10,000 in ads in a month before they print, and you get about 70% of revenue after that. Franchisees there are unhappy about commission cuts under private-equity ownership.
How does a digital local brand compare?
"Our costs are near zero by comparison, so this model, done right, has far more potential."
A digital brand pays for software and audience growth, not paper and postage. The same advertiser dollar leaves a very different margin. My own estimate is that an all-digital version of the same model costs 80% to 90% less.
Then why do print magazines still sell?
Because business owners love holding things they paid for. That's real, and I don't dismiss it. I've heard of a magazine business doing about $10 million a year, so print can work as an advertiser-funded product.
Is there an opening for franchisees?
I think so. Unhappy print franchisees already know how to sell local ads. An all-digital version sold to them, at around $1,000 a month or with no upfront fee, could be compelling. One franchisee told me there's no upfront cost, and that if you don't charge upfront you're going to crush. I haven't figured out the best way to take that to market yet.
Whether to add print to your own digital brand is a separate question. I cover it in should a local newsletter launch a print magazine.
Answered by TJ Larkin. From a Local Media HQ podcast episode and strategy calls in 2025 and 2026. Last updated .