Florida United States Franchise Brokers

Become A Franchise Owner

Many people think starting a franchise is cheaper and easier than starting their own small business, but there are many franchise costs that must be considered. Thanks to the Uniform Franchise Offering Circular (UFOC) required in the United States by the Federal Trade Commission (FTC), the costs must be presented to all buyers by law.

Understanding How Much a Franchise Costs

How much a franchise costs depends on the industry, the parent company, the size of the business, and the location, among other things. There are, however, some common fees that can be expected in most situations, including:

  • Location Expenses: These can include rent, store remodeling, insurance and other related expenses.
  • Franchise Fee: This is one of the largest costs in most cases, and covers using the parent company's trademark.
  • Equipment and Supplies: This expense includes furniture, fixtures, decor, signage and more.
  • Operating Costs: Licenses, marketing, retail inventory, employee salaries and benefits must all be considered.
  • Working Capital: Cash on hand is needed to sustain the business in the first three to six months before revenue kicks in.

The parent company provides estimates for how much capital is needed for each category as well as other expenses that may be required to get the business underway.

Employing the services of a business broker to help find and negotiate a franchise deal can be very valuable, particularly to new business owners and first-time franchisees. RPI Commercial is an experienced business brokerage that can help owners through the buying process. RPI can be reached at 1-877-549-5210 or via email at info@rpicommercial.com for more information.