Initial Investment Costs
The initial costs of a franchise can be found in Item 5 of the franchisor’s FDD (Item 7 shows the costs in tabular form), and range from a few thousand dollars into the millions of dollars depending on the industry, building requirements, equipment needed, and several other factors. The most notable fee that varies from franchise businesses to non-franchise businesses is the franchise fee. This fee stems from the heart of the franchise model, and helps the franchisor ensure that their business system will be executed as consistently as possible across all of their units.
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