How much start up capital does a franchisee need to begin a franchise?
Fortunately, for the sake of planning ones future, FTC disclosure requirements demand a thorough breakdown of the “total initial investment”. Naturally, that investment varies from franchise to franchise, but the franchisor’s offering circular is (supposed to be) an excellent source for determining the cost of starting up a given business.
Interestingly enough, one facet of franchising that can, at times, make it less attractive compared to an independent venture is its “all or nothing” approach to initiating the business. In other words, while one can bootstrap an independent business, a franchisee must invest according to the franchisor’s standards. Naturally, it is in the franchisor’s (as well as the franchise network’s) best interests to maintain its standards, but the independent always has more options.
For more information on franchising, visit the website BibbyGroup.com.