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 in between $10,000 and $30,000. Seventy percent of franchisors charge an initial franchise fee of $40,000 or less. The average investment, excluding real estate costs, is between $350,000-$400,000.
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.
