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How Much Franchises Cost

The amounts shown below are in US$ and are averages of figures provided by franchise companies that participated in a survey. Prospective franchisees afford will often borrow the necessary funds to open the franchise from a lender which specializes in franchise loans. The amount loaned is based upon three factors (1) Available cash flow from business to service a loan (2) Value of collateral securing loan and (3) Amount of cash injection from business owner as it relates to the overall franchise cost.

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Franchise Category Franchise Fee Total Investment
Accounting/Credit/Collections $17,286 $31,329
Advertising & Promotion $17,813 $32,107
Automotive Products & Services $21,848 $207,746
Building Maintenance/Cleaning/Inspection $18,967 $61,262
Building & Remodeling $23,509 $104,373
Check Cashing/Protection $21,650 $115,920
Child Development/Education/Products $21,646 $133,013
Clothing/Shoes/Accessories $16,667 $93,443
Computer Sales & Service $17,833 $109,913
Convenience Stores/Supermarkets/Drugs $23,481 $380,726
Education/Personal Development - Adult $27,948 $123,567
Employment & Personnel $21,037 $105,238
Food - Donuts/ Cookies/ Bagels $24,676 $261,165
Food - Quick Service/Take-out $20,084 $299,618
Food - Ice Cream/Yogurt $18,316 $190,177
Food - Restaurant/Family Style $32,925 $772,927
Food - Specialty $22,714 $213,318
Health/Fitness/Beauty $11,389 $91,240
Home Improvement & Hardware $14,333 $118,900
Laundry/Dry Cleaning $20,205 $171,121
Lodging $27,300 $6,600,000
Packaging/Mailing $22,054 $148,600
Pet Products/Services $15,800 $103,820
Photography Products/Services $31,317 $121,067
Security/Safety Systems $18,381 $99,913
Signs $20,288 $85,269
Sports/Recreation & Entertainment $14,983 $295,310
Travel $19,945 $76,036
Video/Audio/Electronics $24,883 $135,744
Source: "Annual Franchising Industry Overview" Bond's Franchise Guide's

 


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