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What kind of investment is necessary to buy a franchise?

Investment requirements differ tremendously. It all depends on the industry and thetype 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 estateto 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 $40,000or 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'sFranchise Opportunities Guide can supply general information.
Image for Georgio Salas
(FranchiseClique.com)
Updated: Feb 20, 2011
Word count: 98 · Read time: 1 mins
Investment requirements differ tremendously. It all depends on the industry and thetype 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 estateto 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 $40,000or 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'sFranchise Opportunities Guide can supply general information.

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