Franchising Insights

Even if you have a robust savings account, you’ll probably need more than that to launch a franchise. Your ability to qualify for a loan will determine whether you can start the business of your dreams—and sustain it. Beyond your initial investment, you’ll need enough money to cover day-to-day operations, salaries, and equipment costs. By understanding loan requirements and the latest franchise financing trends, you can carefully weigh options and meet lender requirements.

However, while franchise ownership can be one of the smartest paths to business ownership, it's critical to understand the breakdown of costs for a franchise before diving in. Starting a franchise isn't as simple as paying a fee and getting the keys to the front door. From upfront investments and ongoing royalties to less obvious expenses like technology fees and working capital, the actual cost of owning a franchise is much more complex than many first-time franchisees expect.

You may be surprised to learn that starting a business doesn’t have to come with a sky-high price tag. There are many franchise opportunities available for under $100,000, offering aspiring entrepreneurs a more accessible path to business ownership.

If you're going to buy a franchise, be sure you understand all of the associated franchise costs. Let’s break down the main expenses you’ll encounter upfront and how to determine the amount you'll need to finance. Much like buying a home, most entrepreneurs make a down payment on their franchise and finance the rest with a loan which they pay back over time.

Starting a franchise can be an exciting venture, but figuring out how to fund it can often feel overwhelming. In this webinar, Michelle Rowan, President of Franchise Business Review (FBR), and Jade Maloney, a franchise funding consultant with Benetrends Financial, discuss several key franchise financing options.

Like any business venture, franchising comes with its share of one-time startup costs, franchising fees, and ongoing expenses. Knowing these numbers can help you determine what you can realistically afford so you can set yourself up for success. Let's start with the big three franchising costs to consider when exploring franchise opportunities.