How Much Should I Expect To Pay For A Franchise?
If you’re looking to become a franchise owner, you will want to know all the details about a business before you invest.
One of the biggest questions people have is, “What should I expect to pay for a franchise?”
This answer is not cut-and-dry or black-and-white. It depends on what type of business you invest in and even the brand you choose.
In our last article, “Virtual Vs. Brick And Mortar Franchises, Which Is Best,” we discussed the differences between home-based and brick and mortar franchises.
Today we will talk about what to expect to pay for a franchise and which type of franchise is in your best interest to look into!
What You Should Expect To Pay For A Franchise
As we said, there isn’t a solid answer to what you should expect to pay for a franchise. If you decide to become a franchisee, you will be expected to pay a franchise fee and invest a certain amount to start up the business.
The franchise fee allows you to use the brand, logo, likeness, and marketing strategies, among other things to run your business.
The investment amount is required to get the business off the ground. This is the initial investment made to build, purchase and operate the business in the very beginning.
Brick And Mortar Franchise
Obviously, a brick-and-mortar franchise is the most expensive type of franchise. Mcdonald’s, Starbucks, and Applebees are a few franchises that are going to cost upwards of a couple hundred thousand to millions of dollars to invest in. This is because they are well-known and very successful name-brand franchises.
Think of them as the Louis Vuitton of the franchise industry.
Smaller franchises like Panera Bread, Einstein Bros. Bagels, other fast-casual franchises, and 7-Eleven or other convenience stores are not going to be as costly but still could cost thousands to hundreds of thousands of dollars to invest in initially.
Home-Based Franchises
A home-based franchise is the most affordable franchise option because there is typically no overhead or operating costs. You are more than likely selling a service compared to a product.
You may be using your knowledge of fitness to run a personal training business or offer traveling pet care services. As a home-based business, you won’t be paying for products, utilities, or even employees if you can run it by yourself.
An investment in a home-based franchise can cost anywhere from $5,000 to $200,000.
Work With MVision Franchise To Become A Franchisee!
Becoming a franchisee doesn’t happen overnight. It takes research and discussion to figure out what type of franchise is best for you. Not sure where to start? Not sure if a product franchise or service franchise would be a better match? We can help!
Here at MVision Franchise, our founder, Dr. Marc Camras, has built the largest networks of franchises and start-up concepts to help you find your perfect business match.
To learn more about Marc Camras and how we can help you become a business owner, schedule a discovery call today!