What Is The Cost To Franchise Your Business? | Franchise Law Blog

What Is The Cost To Franchise Your Business?

What is the cost to “franchise your business”.  This is a question that comes up often and one where you are bound to find a wide (really wide) range of estimates and opinions.  This “cost” issue was recently discussed in Julie Bennett’s excellent Franchise Times Article‚  Anecdotes Tell Peril of Starting a Brand‚ Yet Statistics Don’t Exist”.  

The article addresses a number of issues that potential start-up franchisors should consider.  However‚ two of the issues that I would like to emphasize relate to:

  1. What Franchise Services Do You Require to Franchise Your Business; and
  2. What should the Cost be.

In the Article‚ Julie Bennett does a great job of evaluating the experiences of a start-up franchisor who‚ it appears‚ entered the world of franchising at an accellerated pace.  That is‚ the start-up franchisor of a child fitness concept‚ hired a large franchise development company (I believe the company was Francorp) and purchased and allegedly paid $86‚400 for a franchising package.  The start-up franchisor explains that when she visited with the franchise developer they picked her up in a limo and then proceeded to take her “through everything‚ from concept review through site analysis…” Ultimately this start-up franchisor mentions that she was dissatidsfied with the franchisor developer’s services and‚ ultimately‚ she utilized a different company to redraft her FDD – – at an additional expense‚ of course.  Certainly‚ I am not aware of this start-up franchisors particular experience‚ nor do I have a basis to comment as to the franchise developer‚ however‚ I have alot to say about the “franchising process” and the “cost”.

Here are my thoughts:

By the way‚ so in addition to being a franchise lawyer‚ I am also the managing member of a national franchise company (a home maid cleaning franchise) and I can tell you that when it comes to franchising there is alot to get done.  Dont rush the development process and dont sign up for services that you may not need.

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Category: Start a Franchise

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