What do Franchises Cost?
What is an Initial Franchise Fee?
The initial franchise fee is paid by the franchisee to the franchisor, upon signing the franchise agreement. This payment acts as compensation for the experience, training, recruiting and the right to use the franchise brand name
So, on average what do franchises cost “all-in”, including the initial franchise fee lump sum payment due at signing? Of the current 4,000 franchises available in the U.S. today, here’s a breakdown of what the average initial investment ranges and the percentage of franchises in that category.
The #1 contributor to the overall cost of a franchise is whether commercial real estate is needed for the franchise or whether it’ll be home-based.
Average Initial Investment Range
Under $50,000
$50,001 – $100,000
$100,001 – $250,000
$250,000 – $500,000
Over $500,000
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