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Basics - Franchise Costs By Category

The amounts shown below are in US$ and are averages of figures provided by franchise companies that participated in a survey. Prospective franchisees afford will often borrow the necessary funds to open the franchise from a lender which specializes in franchise loans. The amount loaned is based upon three factors (1) Available cash flow from business to service a loan (2) Value of collateral securing loan and (3) Amount of cash injection from business owner as it relates to the overall franchise cost.

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Franchise Category Franchise Fee Total Investment
Accounting/Credit/Collections $ 17,286 $   31,329
Advertising & Promotion $ 17,813 $   32,107
Automotive Products & Services $ 21,848 $  207,746
Building Maintenance/Cleaning/Inspection $ 18,967 $   61,262
Building & Remodeling $ 23,509 $  104,373
Check Cashing/Protection $ 21,650 $  115,920
Child Development/Education/Products $ 21,646 $  133,013
Clothing/Shoes/Accessories $ 16,667 $   93,443
Computer Sales & Service $ 17,833 $  109,913
Convenience Stores/Supermarkets/Drugs $ 23,481 $  380,726
Education/Personal Development - Adult $ 27,948 $  123,567
Employment & Personnel $ 21,037 $  105,238
Food - Donuts/ Cookies/ Bagels $ 24,676 $  261,165
Food - Quick Service/Take-out $ 20,084 $  299,618
Food - Ice Cream/Yogurt $ 18,316 $  190,177
Food - Restaurant/Family Style $ 32,925 $  772,927
Food - Specialty $ 22,714 $  213,318
Health/Fitness/Beauty $ 11,389 $   91,240
Home Improvement & Hardware $ 14, 333 $  118,900
Laundry/Dry Cleaning $ 20,205 $  171,121
Lodging $ 27,300 $ 6,600,000
Packaging/Mailing $ 22,054 $  148,600
Pet Products/Services $ 15,800 $  103,820
Photography Products/Services $ 31,317 $  121,067
Security/Safety Systems $ 18,381 $   99,913
Signs $ 20,288 $   85,269
Sports/Recreation & Entertainment $ 14,983 $  295,310
Travel $ 19,945 $   76,036
Video/Audio/Electronics $ 24,883 $  135,744

 

Source: "Annual Franchising Industry Overview" Bond's Franchise Guide's

Categories: Financing, Frequently Asked Questions