How Much Does a Franchise Cost?

The cost of a franchise depends on the franchisor and industry, as well as a myriad of other factors. Some of these factors include the size and location of your franchise.

Different business

concepts carry different price tags, with lodging franchises requiring the largest initial investment and ongoing expenses (total investments range from $4 million to $6 million), followed by full-service restaurants (from $700,000 to $3.5 million), fast food restaurants (from $250,000 to $1 million) and auto repair (from $200,000 to $300,000). Mobile and home-based business franchises make up the most affordable buy-in category.

In order to become a franchisee you have to pay a franchise fee, except in rare circumstances. Franchise fees generally start at less than $10,000, which is most common among mobile and home-based business franchises, and can exceed $100,000. The average franchise fee runs from $20,000 to $30,000, and each franchisor has its own set of financial requirements a franchisee must meet to qualify.