What’s The Minimum Personal Investment A Franchisee Is Required To Put Into A Franchise?
answered by Brain DuckettChairman of The Franchising Centre
You would be looking at 30 per cent of the total set-up costs.
It’s worth explaining the terms above as there is often confusion. The franchise fee is the amount the franchisee pays to ‘get into the game’. It covers the grant of the rights to use the name, trademark, system, software and so on that are the subject of the franchise. Often it also covers initial training and various items of equipment.
From the franchisor’s point of view, it should also cover the costs of recruiting the franchisee, including any payments made to third parties for business planning and managing the recruitment process, and some amortisation of the other costs incurred in setting up the franchise in the first place.
Total set-up costs could, however, be a lot more, especially if premises are involved that have to be renovated and fitted out or vehicles have to be signwritten and equipped. Then there’s the cost of recruiting, training and paying staff before the unit opens and of buying stock and storing it until it’s sold.
A good franchisor will help you with all the figures, while a good business plan will both tell you how much you need to borrow and make it easier for you to borrow it.
Want to be your own boss? Start today!
Relooking is a beauty franchise, offering a variety of skin care and anti-aging treatments... find out more£18,000 Minimum Investment
Sweets and Treats Vending is a confectionery distribution franchise company... find out more£9,950 Minimum Investment
SuperGreen Solutions is an advisor, supplier, and installer of energy-efficient solutions to… find out more£178,000 Minimum Investment
Enquire now from
You have pending
Here's just five reasons why you should join our FREE newsletter!
New articles added every week
Hand picked franchise opportunities just for you
First class help and advice for franchising and business
We have the industries best contributors on board
Inspiring and insightful franchise case studies