The information you submit via our enquiry form is shared only with the franchise business(es) that you have selected.

The franchise business will contact you by means of email and/ or telephone only to the email address and phone number you have provided.

By submitting the enquiry form you are consenting to send your personal information to the selected franchise business.

You also agree to receive further newsletter email marketing from What Franchise.

Close

How much does it cost to buy a franchise?

How much does it cost to buy a franchise?

The cost of investing in a franchise can vary greatly. The British Franchise Association explains why

If you are researching franchising, you may be looking at any number of franchise websites, visiting exhibitions or reading franchise magazines.

Through all of these media, you will see businesses advertising their franchise opportunities with details about the fees or cost of investment. However, not all fees are calculated equally.

That’s not to say that franchises are trying to mislead you - it’s simply that with 1,000 or so brands using the model, each has different requirements, tools and products and they will include some or all of these components in their quoted costs.

For example, you may find two similar businesses with very different start-up costs. This may be because one is taking a much higher fee, has extra equipment or vehicles you weren’t aware of or the costs include the initial repayment of a vehicle, whereas the other has provided the total repayment cost.

What this means to you is that you need to be careful about comparing costs when you don’t fully understand what lies behind them. Don’t write anything off because of costs alone and don’t commit to a franchise opportunity on that basis either. Do your research in full, ask lots of questions and get the full measure of the business.

Specifically, check which of the following are included, where relevant to the operations of your potential business:

* Franchise fee (the fee to use the brand and system, etc).

* Equipment (stationery, machinery, office equipment, etc.)

* Initial stock.

* Initial training.

* Initial marketing or sales launch.

* Property costs, including fittings.

* Vehicles (specified whether this is the total cost of the vehicle or the first repayment if on finance).

* Any necessary subscriptions, memberships, licences, etc.

* Staffing costs.

* Any other element for the initial launch of the business.

* VAT.

* Working capital.

Typical total start-up cost Franchisee operations within the same network may have slightly different costs, so ask for a ball park typical all inclusive start-up cost for a franchisee. However, remember that this is an indicator only and business liabilities such as vehicles, staffing and property can vary and mean the actual cost of a specific franchise opportunity is noticeably more or less.

Covering the costs
—————————-

You may be able to cover the total start-up fee of a franchise purely from your own savings. However, in many cases a loan will make up part of the finance. Franchising has stood the test of lending well in comparison to other sectors during the downturn - banks like the franchise model, which offers proven systems and operations.

They also like British Franchise Association member franchises because they know the business model has been scrutinised by the industry’s trade association as part of its membership accreditation process. The bfa has high street banks within its membership, contact details of which can be found on the bfa website. It’s important to always ask for the franchise department when contacting a bank, whose staff understand the niche model perfectly.

As a general rule, banks will lend up to 70 per cent of the start-up fee for an established franchise, decreasing for those brands newer to the sector.

Minimum personal investment
——————————————

Some franchises will expect you to hold, and prove you hold, a minimum percentage (rather than just a minimum set amount) of the total start-up cost in liquid capital. This is typically, where set, 30 per cent of the total average cost, but can be significantly higher or lower.

For more information and advice on researching franchise opportunities see the bfa’s online guide to joining a franchise - and with careful research and a lot of hard work you might be able to start watching the pounds come in yourself.

Exciting Franchise Opportunities

Access4Lofts logo

Start your own Access4Lofts franchise

Profit Chart
Funding Support Available ? Help is available. Check out our franchising funds guide.

Yes

Find Out More
Expected Revenue After 2 Years

N/A

Request Free Information
Find Out More
Access4Lofts logo

Request Free Information

Send a free enquiry to Access4Lofts for further information!

By clicking you agree to be contacted by your selected franchise(s). For further details click here
Stagecoach Performing Arts logo

Start your own Stagecoach Performing Arts franchise

Profit Chart
Funding Support Available ? Help is available. Check out our franchising funds guide.

Yes

Find Out More
Expected Revenue After 2 Years

N/A

Request Free Information
Find Out More
Stagecoach Performing Arts logo

Request Free Information

Send a free enquiry to Stagecoach Performing Arts for further information!

By clicking you agree to be contacted by your selected franchise(s). For further details click here
Driving Miss Daisy logo

Start your own Driving Miss Daisy franchise

Profit Chart
Funding Support Available ? Help is available. Check out our franchising funds guide.

Yes

Find Out More
Expected Revenue After 2 Years

N/A


Request Free Information
Find Out More
Driving Miss Daisy logo

Request Free Information

Send a free enquiry to Driving Miss Daisy for further information!

By clicking you agree to be contacted by your selected franchise(s). For further details click here
Century 21 UK logo

Start your own Century 21 UK franchise

Profit Chart
Funding Support Available ? Help is available. Check out our franchising funds guide.

Yes

Find Out More
Expected Revenue After 2 Years

N/A

Request Free Information
Find Out More
Century 21 UK logo

Request Free Information

Send a free enquiry to Century 21 UK for further information!

By clicking you agree to be contacted by your selected franchise(s). For further details click here
Bluebird Care logo

Start your own Bluebird Care franchise

Profit Chart
Funding Support Available ? Help is available. Check out our franchising funds guide.

Yes

Find Out More
Expected Revenue After 2 Years

N/A

Request Free Information
Find Out More
Bluebird Care logo

Request Free Information

Send a free enquiry to Bluebird Care for further information!

By clicking you agree to be contacted by your selected franchise(s). For further details click here
View all opportunities

What Franchise Newsletter

Keep up to date with all the industry news

Thank you, your sign up was successful. Please check your emails for a verification link.