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 (800) 976-4904 or by email.
Total Estimated Costs to Franchise Your Business: $18,500 to $84,500 (Outlined Below)
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:
To learn more about how to franchise your business, and the franchise sales marketing channels visit our Ultimate Guide to Franchising Your Business.
Total Estimated Costs for Initial Franchise Sales: $22,500 to $75,500 (Month estimate outlined below)
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:
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 (800) 976-4904, 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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