s of Franchising – Question 14 WHAT KIND OF INVESTMENT IS NECESSARY TO BUY A FRANCHISE?
Investment requirements differ tremendously. It all depends on the industry and the type of business. Total start-up costs can range from $20,000 or less, to over $1,000,000, depending on the franchise selected, and whether it is necessary to own or lease real estate to operate the business. Moreover, the initial franchise fee for most franchisors is between $10,000 and $30,000. Seventy percent of franchisors charge an inital franchise fee of $40,000 or less. The average investment, excluding real estate costs, is between $350,000 -$400,000. You must discuss the inital fees and opening costs with individual companies, although IFA’s Franchise Opportunities Guide can supply general information.
