How much does it cost?

Joining a franchise can cost as little as $15,000, up to millions of dollars. Typically you are paying a premium for established brands, while it is less expensive to join a system that is new or just hitting its stride. It usually costs less to join a franchise than start a similar business from scratch.

The franchise fee may be an upfront payment to the franchisor, an ongoing fee that may be a percentage of revenue or profit, or a combination of both. In addition you will need to consider other costs such as the start-up investment and operating capital required, and ongoing extra fees for marketing. Do you need to buy capital equipment such ovens or vehicles? Or commit to particular lease arrangements? All this needs to be set out clearly in the franchise agreement.