The estimated cost to franchise your business ranges from $18,500 to $84,500. In this article, we break down the estimated costs at each stage of the franchise development process and what it will take to go from where you are today to becoming a franchisor authorized to sell franchises. We also include a break down of estimated franchises sales expenses during your first year of operation after you become a franchise.
To learn more about franchising, the costs involved, and how to get started, give our team a call at (718) 979-8688 or by email.
The cost to franchise your business, generally, ranges from $18,500 to $84,500. Actual costs that you incur will depend on the franchise team that you are working with, the industry that you are in, and the level of support that you need. Below is breakdown of the estimated costs associated with the franchise development process and the necessary steps to franchising your business. These steps include development of your FDD, preparation of your franchise operations manual, formation of your new franchise company, preparation of financial statements, and franchise registration.
To learn more about how to franchise your business, and the franchise sales marketing channels visit our Ultimate Guide to Franchising Your Business.
Although not technically a cost to franchise your business, every new franchisor should be considering a budget for franchise sales. Franchising is scalable and building up franchise sales is a process that occurs over years. To start, consider a franchise sales budget within your first year that is focused on building the foundation for your franchise sales efforts. Budgeted expenses should include building a sales website, developing website copy, PR, and presentations that tell the story of your brand and what makes you different. We also recommend building broker relationships and joining broker organizations. The estimated year 1 costs for a reasonable franchise sales strategy should range from $22,500 to $75,500. Of course these estimates will vary depending on how many franchises you plan to sell.
Assuming that you are in a favorable industry that is not oversaturated and assuming that you have a realistic franchise sales goal of 5 new franchise sales (i.e., not sales to your existing organic contacts), you should consider the following aggregate costs over the initial 12 months:
When it comes to franchising your business remember that you are entering a new industry and franchise success should be viewed from a mindset of implementing a 1, 2, 3, 4 and even 5 year plan. Who you align with and trust to franchise your business will be critical. Work with a legal team that is dedicated to franchising and who can provide you with additional resources, insights, and relationships that will help you grow.
Learn more about our fixed fee Franchise Launch Program by calling us at (718) 979-8688, by email, or live chat. Benefit from our fixed fee services that industry leading legal representation + franchise development know-how that covers all of the steps to franchising your business.
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