What kind of investment is necessary to buy a franchise?
February 20, 2011
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.