How Much Does it Cost to Franchise Your Business | Internicola Law Firm

How Much Money Does it Cost to Franchise Your Business?

Understanding the cost to franchise your business is an important step in evaluating if you should franchise and selecting the right team and franchise development strategy. When evaluating the cost it’s important to understand that franchising is a “process” that takes place over years and that, in this article, we’re talking about (a) the franchise development stage where you take the legal and development steps necessary to call yourself a franchisor and start selling franchises; and (b) the franchise sales stage where you begin to market and promote franchise sales over the next twelve months.

Cost to Franchise a Business

The cost to franchise your business, generally, ranges from $18,500 to $84,500 for the franchise development stage, and $22,500 to $75,500 for the initial 12 month franchise sales stage. The cost will vary depending on the legal and franchise team that you work with, the industry within which your business operates, the organic reach of your brand, and the aggressiveness of your franchise sales goals. Spending more does not necessarily equate with better success and spending too little may lead to lost opportunity and unintended consequences.

Below we discuss the costs in more detail.

To learn more about franchising, the costs involved, and how to get started, give our team a call at (800) 976-4904 or by email.

Costs During the Franchise Development Stage

The franchise development stage is the stage where you go from business owner and entrepreneur to franchisor. Its the stage where you work with a legal team to franchise your business and take the steps necessary to franchise your business, become a franchisor, and start selling franchises. During the franchise development stage, you should consider the following costs:

Total estimated cost to franchise your business during the franchise development stage: $18,500 to $84,500

To learn more about how to franchise your business, and the franchise sales marketing channels visit our Ultimate Guide to Franchising Your Business.

Costs During the Franchise Sales Stage?

The franchise sales stage comes right after the franchise development stage and, as to many aspects, should be occurring side-by-side during the later part of the franchise development process. Although marketing and selling franchises goes beyond the scope of this article, its important that when you consider the cost of franchising your business you include a franchise sales budget for the first 12 months. Knowing how much you need to invest in franchise sales will, largely, be determined by the industry you operate in, the number of organic qualified prospects (i.e., existing customers and contacts) that are already interested in buying your franchise, the internal marketing capabilities of your own team, and, most important, the number of franchises that you want 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:

Total estimated cost to franchise your business during the franchise sales stage (first 12 months): $22,500 to $75,500

Be Strategic!

Keep in mind that we are talking about a modest goal of on-boarding 5 new franchisees that are not already contacts in your funnel and that this is only an estimate. We’ve seen start-up franchisors sell far more with much less dollars and we’ve seen some brands spend far more without getting great results. You need to be strategic, build the right relationships and work with professionals who will help you avoid mistakes and wasted dollars.

Get Started – Learn More

Learn more about our fixed fee Franchise Launch Program. This fixed fee service program combines legal representation + franchise development and covers all of the steps involved in developing your franchise offering. if you have questions about whether or not franchising is right for you read our guide on Should You Franchise Your Business.

Let's Talk

With services to make your growth strategy simple, cost effective, and with a team excited to help you, let’s talk about how we can help grow your brand. Click on the button below or call us at (800) 976-4904.

Top Resources for Franchising Your Business

  • videoImg

    Franchise Sales Compliance Guide

    Are you a franchisor or a part of a franchise sales team? Do you want to learn more about franchise sale compliance and ensure that your sales practices comply with franchise laws and are consistent with best practices? Then this guide is for you. In this guide you’ll learn the... read more

  • videoImg

    How to Franchise Your Business

    In this guide you’ll learn the basics of franchising, how to franchise your business, and how to win at franchising. We’ll also take a deeper dive into legal requirements for franchising and why they matter, steps to take before and after you launch your franchise, and even some tips on... read more

  • videoImg

    Franchising vs. Licensing

    When considering expanding a business both franchising and licensing are possible options. In this guide, you'll learn the differences of franchising and licensing and understand how each will affect you. read more

all guides

  • None right now

all videos

  • videoImg

    Franchising Your Business: Advantages & Disadvantages

    Are you a successful business owner? Are you looking for ways to expand your business? If so, this article will provide the answers you need to decide whether franchising your business is the right step for you. In short, franchising allows you, the franchisor, to create a relationship among several... read more

  • videoImg

    Documents To Start A Franchise

    Under federal law, prior offering or selling a franchise in any state, franchisors are required to disclose a franchise disclosure document (FDD) to their prospective franchisees. In addition to federal law certain states, including the franchise registration states, require that franchisors register their FDD with the state. The legal documentation... read more

  • videoImg

    Is Your Business Franchisable and Should You Franchise?

    Franchising may be the next big step for your business and represents an opportunity to grow your brand. So, how do you know if franchising is right for you? How do you know if your business is franchisable and, if it is, whether or not you should franchise your business?... read more

all articles

  • videoImg

    Positioning Your Brand to Win at Franchise Sales

    In this webinar, Charles Internicola and Laura Meyer, founder of Joybrand Creative, talk about how to position your brand to win at franchise sales. Some topics include: How franchisors can develop their brand strategy How to differentiate your brand strategy between your targeted end-user customers and prospective franchisees for franchise... read more

  • videoImg

    How to Work With Franchise Brokers and Sell Franchises

    In this webinar, Charles N. Internicola, Esq. and Lisa Welko, CFE of Integrity Franchise Group discuss what it takes to make your brand attractive to franchise brokers and sell to qualified franchisees.  Selling franchises and building a durable franchise system - all comes down to being a "good franchisor," making... read more

  • videoImg

    Leveraging PR & Digital Media to Jumpstart Franchise Sales

    Key strategies to accelerate franchise growth for startup and emerging franchisors In this webinar, franchise attorney Charles Internicola and Nick Powills, founder of No Limit Agency and 1851 Franchise, discuss key strategies to accelerate franchise growth through PR and digital media. Some topics include: Steps franchisors should take when it... read more

all webinars

Let’s Talk

With services to make your growth strategy simple, cost effective, and with a team excited to help you, let’s talk about how we can help grow your business.

Fill out the following form and we’ll contact you as soon as possible. To reach our team directly, give us a call at (800) 976-4904.

An attorney client relationship is not established by submitting this initial contact information.