What Will Developing a New Franchise System Cost?

Aside from the costs for professional service providers, the total financial investment and steps required to properly launch and fund a new franchise model can vary considerably from industry to industry.

This makes it extremely difficult for me to quote you a specific cost estimate. Typically, the amount of investment that is required to adequately fund a launch will be in close ratio to the differences that you would find in financing the original business when compared to other businesses.

My point being, is that it is more affordable to fund an original business that is service based, requires little capital investment or equipment, is operated in a minimal space requirement and with limited staff than say a 400-seat restaurant that needs substantial real estate, equipment, furnishing, and personnel to establish and operate.

While some of the steps and costs that are incurred to start a franchise based on an extensive business are the same as those to start a franchise based on a small, more limited size business, many of the additional costs will be based on the complexity of the original business.

For that reason, it is essential to obtain a clear understanding of the costs that are expected for developing your specific business into a proper franchise model. This can generally be accomplished by seeking professional development services or using the guidance of an experienced franchise attorney with a strong business background that can also guide you through the business portions of the development process.