Short answer: It varies.
There are some franchises like CruiseOne/Dream Vacations that can cost as little as a few thousand to start, while others like Wyndham can cost well into the tens of millions. The charts below, which were compiled from the 2025 FDDs of CruiseOne/Dream Vacations and Wyndham Hotels and Resorts, illustrate this fact.
Estimated Initial Investment for a New CruiseOne/Dream Vacations Franchise
| Name of Fee | Low | High |
| Initial Franchise Fee | $10,500 | $10,500 |
| Training Expenses | $250 | $475 |
| Additional Signatories/Associates Training and Travel | $745 | $1,245 |
| Office Equipment and Furniture | $0 | $350 |
| Initial Office Supplies | $50 | $275 |
| Computer Hardware/Software Equipment | $0 | $2,000 |
| Insurance, Legal and Accounting | $150 | $1,800 |
| Permits, Franchises, Bonds & Memberships | $150 | $500 |
| Initial Promotion and Advertising | $250 | $1,200 |
| Criminal and Civil Background Check | $0 | $50 |
| Additional Funds (3 months initial phase for full-time franchisees) | $500 | $2,500 |
| Financing Application Fee | $0 | $75 |
| ESTIMATED TOTAL (for new franchisees) | $12,595 | $20,970 |
Estimated Initial Investment for a New Wyndham Hotel Franchise
| Name of Fee | Low | High |
| Initial Fee (inclusive of Application Fee) | $150,500 | $150,500 |
| Photos | $3,560 | $9,860 |
| Training Tuition | $6,250 | $6,250 |
| Training Expenses | $1,200 | $2,950 |
| Market Study | $12,000 | $50,000 |
| Real Estate and Site Preparation | Varies | |
| Architecture, Design and Engineering, Phase I Environmental, Permits, Licenses, Deposits and Related Fees | $1,569,715 | $5,871,240 |
| Facility Construction | $41,210,033 | $73,456,020 |
| Construction Contingency | $2,060,502 | $3,672,801 |
| Technology Systems | $199,047 | $201,047 |
| Property Management Set-Up and Installation | $19,400 | $29,300 |
| Furniture, Fixtures and Equipment | $3,818,596 | $4,046,638 |
| Signage | $35,000 | $150,000 |
| Opening Inventory | $993,215 | $1,055,667 |
| Insurance | $102,500 | $305,000 |
| Grand Opening Advertising | $50,000 | $450,000 |
| Liquor License | $3,500 | $450,000 |
| Pre-Opening Wages | $702,343 | $2,214,182 |
| Miscellaneous Non–Tangible Asset Costs | $54,363 | $81,408 |
| Additional Funds for First 3 Months of Operation | $927,428 | $2,439,267 |
| ESTIMATED TOTAL* | $51,919,152 | $94,642,130 |
*The estimated initial investment range is for a 301-room new construction Wyndham Hotel facility. The range does not include the cost of purchasing or leasing real estate.
These are two examples from the extremes of the spectrum, but the point remains: the cost to open a franchise varies by the franchise system and location the franchise unit will be run from. But if you’re looking for a more concrete figure, according to franchising industry expert Michael H. Seid, founder and managing director of Michael H. Seid & Associates, the initial investment for a single unit franchise typically falls in the $100,000 to $300,000 range.
Why Do Franchise Costs Vary So Much?
The short answer? Execution requirements.
Continuing with the example of CruiseOne/Dream Vacations, where the estimated initial investment can be under $10,000, since the administrative responsibilities of the franchise can be done from home (or from anywhere as the franchise itself says), there is no need for a commercial lease or real estate purchase. This is significant because the purchase and renovation of real estate is commonly the most expensive and variable cost in opening a franchise. In addition, with franchises where the equipment and materials needed for operation is less specialized, the cost is further lessened.
Regardless of the franchise, though, there are some common costs involved with the purchase of a franchise. The first of those costs is the franchise fee.
What is the Franchise Fee?
The franchise fee is basically a cover charge for entry into a franchise system. Think of it as the fee you pay the franchisor for doing the legwork developing the brand, and saving you from many (not all) of the pitfalls that come with starting a business from the ground up.
The franchise fee usually covers the right to use the franchisor’s system (including trademarks and proprietary operating system), and services the franchisor provides to franchisees such as help finding a location, training materials, etc. For most franchises, the franchise fee is due in full when the franchise agreement is signed.
Also associated with opening a franchise is the cost for training. While the training materials are often covered by the franchise fee, franchisees will often have to cover their attendance costs (travel and lodging) for the on-site training.
Other Common Opening Franchise Fees
Other common opening fees for franchises are similar to a non-franchise business opening. These costs include:
- General office supplies and equipment
- Industry-specific equipment
- Leasehold improvements and construction, if real estate is needed
- Signage and decor, if not a home-based franchise
- Inventory
- Professional fees (e.g. legal, licensing, accounting, etc.)
- Grand opening advertising/marketing
- Insurance
- Taxes
What is a Cash Requirement When Buying a Franchise?
Many franchisors will also specify a minimum liquid cash requirement for those who want to open one of their franchises. This requirement is an amount of money the franchise requires a franchisee be able to access quickly, if needed.
Most often, the liquid cash requirement includes an estimate for emergencies and setbacks. It also typically accounts for regular living expenses until the franchise unit begins turning a profit large enough for the franchisee to garner an adequate take-home wage.
Note: While these costs are common, they may not apply to all franchises. Please check the franchise disclosure document (FDD) of a specific brand for details on its investment costs and don’t be afraid to ask the franchisor any questions you might have. Also, be sure to go over any franchise agreements with a franchise lawyer and accountant before signing.