By Cost

By Cost

How much does a franchise cost?  What’s the total investment in a franchise? What are all the costs in investing in a franchise?  These are all great questions, and ones you should consider, when looking to invest in a franchise.  Your budget will always be one of the most important considerations for any business in which you’re interested.

Franchises are required to disclose to you, the interested buyer, the exact costs to invest into their franchise through their Franchise Disclosure Document (FDD).  Typically, the franchise will give you an investment range, and then itemize the costs to show how they arrived at that range.  Many different items will make up the total franchise investment:

  • The Franchisee Fee: This cost can range from very inexpensive to tens of thousands of dollars. It’s a one-time fee.
  • Franchise Royalties: Generally, franchise royalties are a percentage of your gross sales and they may range from 4-8% of your gross sales (this will vary by franchise). Some franchises may have a flat fee rate. Royalties are paid to the franchisor for the ongoing support, training and infrastructure the franchise provides you.
  • Marketing Costs: One of the values of a franchise is that it provides you marketing support on a local, regional and national level (if applicable). The franchise is able to create marketing buying power and institute marketing programs that will help your business grow.
  • Equipment Costs, Insurance Costs: Some franchises require specialized equipment or specific insurance in order to operate their franchise. These costs will vary by franchise and must be disclosed in their Franchise Disclosure Document (FDD).
  • Real Estate: This is typically the item that causes the range in a franchise investment. Simply, if the franchise you are interested in requires real estate, that price may vary dramatically by market.

FranchiseWorks.com makes it easy for you to consider the right franchise by aligning the franchises by investment.

SPAVIA

The Spavia Day Spa business model is built around 10 years of experience, giving you the tools and support you need to accomplish your personal and financial goals. read more

MASSAGE HEIGHTS

The massage industry is one of the fastest growing industries, and Massage Heights continues to be a leader in this movement, earning $86.4 million in revenue and an 82% growth rate for the past three years. read more

CYCLE BAR

• The Experience: Premium amenities, offered complimentary • The Financial Structure: “Pay as You Go” consumer model • No Contracts, No Commitments, No Accounts Receivable, No Salespeople • Revenue can be generated online 24 hours a day / 7 day per week • Simple Human Resources: Semi-Absentee, Front desk help and Instructors • 4-7 Indoor Cycling Classes offered each day • Modern and Elegant Design in a 2,000 to 3,500 sq. ft. footprint. read more

MY SALON SUITE

"The impact of carefully selecting our franchise owners is a large reason why we have reached consistent success,” added McAllister. “Moving further into 2017, we are looking forward to adding even more talented franchisees to our family, and being able to bring our upscale salon suites to a greater number of communities nationwide.” read more

URBAN FLOAT

The Urban Float brand is focused on providing float clients with a superior experience. From our meticulously designed retail float centers, to our cutting-edge floatation tanks and our commitment to providing our clients with exceptional customer service, Urban Float has set the bar high. read more

PET SUPPLIES PLUS

Pet Supplies Plus has built its reputation by “making it easier to get better products for your pet. read more

MIDICI

We know how to grasp a growing and competitive segment and create a guest experience that sets a brand apart. Menchie’s isn’t really a frozen yogurt brand — at Menchie’s, we make people smile. MidiCi The Neapolitan Pizza Company isn’t just a pizza franchise — we bring friends together. read more

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