Depending on the type of business, start-up franchises can cost from less than $20,000 to more than $1 million, if owning or leasing real estate is required. There are initial franchise fees, which range from $10,000 to $30,000. According to the International Franchise Association, 70 percent of franchisers charge an initial fee of $40,000 or less. The average investment, excluding real estate, costs from $350,000 to $400,000. Franchisees also may be required to pay a percentage of their sales in royalties to the franchiser, typically around 5 percent.
Costs for some franchises:
Sonic Drive-in
Start-up cost: $434,000 to $545,000
Total investment: $900,000 to $2.2 million
Qualifications: $1 million in liquid assets and $2 million in net worth
Snip-its
Initial fee: $25,000
Start-up cost: $127,000 to $274,000
Qualifications: $50,000 in liquid assets and $250,000 net worth.
Subway
Total cost: $108,300 to $300,000
