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Franchising Costs You Need To Consider

Posted: 30th August 2017 - Last updated: 7th September 2017

Start-up costs vary enormously depending on the type of franchise. A high street presence will obviously incur a considerably higher investment than a van-based operation which is essentially run from home, and fast food franchises, for example, demand the installation of expensive equipment. Franchisors will readily quote realistic financial requirements but the aspirational franchisee should also be aware of additional one-off start-up costs such as independent legal and financial advice. Additional ongoing costs may also include monthly contributions to marketing and advertising activities or a management services fee.

A process of ‘Due Diligence’ from initial general interest in franchising to the point of committing to the purchase of a specific franchise is always sound advice. That diligence should include contact with as many of the franchisor’s existing franchisees as is practical.

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