How Much Does It Cost to Start a Franchise?

All franchises have their own requirements, so all the costs are different. In most scenarios, you pay a franchise fee, building costs, professional and contract fees, signage and inventory.

Franchise Fee

All franchise companies require you to pay an franchise fee. The amount of franchise fees depends on which company you are interested in. Franchise fees cover the cost of several things, including support, training and location selection.

Legal Fees

If you are interested in franchising, consult with a franchise attorney. The attorney will assist you in reviewing the Uniform Franchise Offering Circular and the franchise agreement. There is no fee to review these documents, but you will have to pay to consult with the franchise attorney.

Build-Out Costs

Every franchise is different so it's impossible to estimate a price for build-out costs. Once you've decided on a franchise and a location, you will be given an estimate on your build-out costs. This includes things such as furniture, fixtures, equipment and signage.

Inventory

If you are purchasing a franchise that sells a specific product, then you must stock up on inventory. Every franchise is different and has different requirements on this item.

Supplies

All new businesses need proper supplies in order to start and run. Your franchiser will provide you with an estimate of what you need.

References

• How Much Do Franchises Cost?
• How Much Does a Franchise Cost?
• How Much Does It Really Cost To Start A Franchise - Franchises - Ken Hollowell