What Will Your Franchise Cost?
Determining How Much You Will Need to Finance

Before you seek your franchise financing you will want to have a clear estimate for the total amount you will need to borrow for your new venture. The following categories should help you to put together a realistic financing estimate.

Location Related Expenses

Property Leases for your franchise, security deposits, monthly lease fees. Purchasing a property include the facility and any land associated with the property combined with yearly taxes. Utilities costs, deposits, signage and licenses. Any renovation costs or site modification costs.

Equipment

What are the total equipment costs to get your franchise up and running?

Operating (Working) Capital

Interior Decorations

Costs associated with revamping your franchise location's interior and getting it up to franchise standards with the necessary colors, look and fixtures.

Inventory

How much inventory will you need to keep on hand? What are the costs associated with this inventory? Ask your frachise provider what you'll require in this area.

Insurance

Insurance is required for your franchise location (property location), worker's compensation, liability, casualty, auto insurance etc.. Depending on your business this fee can have quite a range.

Education

Many times training is provided for you through your franchise arrangements and you may not need to count this a second time for your financing. However in some cases you may wish to get additional training for computer use or skills required that the franchise may assume you already have.

Labor and Training

You will need to cover labor costs for employees on a monthly basis which may begin before you even open your doors. You might have to spend to train your employees or invest your own time getting them started.

Zoning Expenses and Consulting

If the location you've chosen for your franchise has not had a business like yours in the past you might incurr zoning expenses. You may also incurr consulting fees to help you navigate the zoning regulations to get your franchise location approved.