What's generally Included in the Cost of a Franchise?

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Each brand will be able to give you a detailed breakdown of their costs, but it could include some or all of the following:

  • Franchise Fee: Varies by business
  • Equipment & Inventory: Varies by business
  • Real Estate & Construction: For physical locations
  • Lease negotiating assistance
  • Training & Support
  • Marketing Startup Costs
  • POS (point of sale) and scheduling systems
  • Royalty Fees: Ongoing monthly % of revenue (4%–10% common)
  • Advertising Fees: A smaller monthly fee for some brands (2-4% common)