The cost involved with buying a franchised business changes a lot from one business sector to the next, as well as within each individual sector. Costs can fluctuate from as little as £8,000, all the way up to more than £4 million at the time of writing but if you are looking for an average cost for a decent business franchise, £40,000 to £60,000 is a decent place to start.
Because of the high price associated with Franchised Businesses it’s important that you know what franchise is best for you, whether it be mobile, home-based or in a storefront location. Thankfully Franchise Info have provided us with this infographic to help break down the different costs involved.
In addition to the purchase of the franchise itself, you need to consider additional costs such as legal fees, which will be incurred before you even sign on the dotted line. You may also incur fit-out costs for retail units and have to pay for signage, inventory, insurance, employee training, landscaping, business licenses and other essentials before you are up and running.
The number of businesses owned by franchisees has increased by 14% in the last 2 years to 44,200 and these businesses are becoming larger as the franchise sector matures. With annual turnover rising, more than half of all franchisee-operated businesses now claim to be turning over in excess of £250,000 a year.