Franchising, Money Money Money

How Much Franchises Cost


How Much Franchises Cost
The amounts shown below are in US$ and are averages of figures provided by franchise companies that participated in a survey. Prospective franchisees afford will often borrow the necessary funds to open the franchise from a lender which specializes in franchise loans.            

The amount loaned is based upon three factors:

(1) Available cash flow from business to service a loan

(2) Value of collateral securing loan and

(3) Amount of cash injection from business owner as it relates to the overall franchise cost.

Franchise Category Franchise Fee Total Investment
Accounting/Credit/Collections $ 17,286 $   31,329
Advertising & Promotion $ 17,813 $   32,107
Automotive Products & Services $ 21,848 $  207,746
Building Maintenance/Cleaning/Inspection $ 18,967 $   61,262
Building & Remodeling $ 23,509 $  104,373
Check Cashing/Protection $ 21,650 $  115,920
Child Development/Education/Products $ 21,646 $  133,013
Clothing/Shoes/Accessories $ 16,667 $   93,443
Computer Sales & Service $ 17,833 $  109,913
Convenience Stores/Supermarkets/Drugs $ 23,481 $  380,726
Education/Personal Development – Adult $ 27,948 $  123,567
Employment & Personnel $ 21,037 $  105,238
Food – Donuts/ Cookies/ Bagels $ 24,676 $  261,165
Food – Quick Service/Take-out $ 20,084 $  299,618
Food – Ice Cream/Yogurt $ 18,316 $  190,177
Food – Restaurant/Family Style $ 32,925 $  772,927
Food – Specialty $ 22,714 $  213,318
Health/Fitness/Beauty $ 11,389 $   91,240
Home Improvement & Hardware $ 14, 333 $  118,900
Laundry/Dry Cleaning $ 20,205 $  171,121
Lodging $ 27,300 $ 6,600,000
Packaging/Mailing $ 22,054 $  148,600
Pet Products/Services $ 15,800 $  103,820
Photography Products/Services $ 31,317 $  121,067
Security/Safety Systems $ 18,381 $   99,913
Signs $ 20,288 $   85,269
Sports/Recreation & Entertainment $ 14,983 $  295,310
Travel $ 19,945 $   76,036
Video/Audio/Electronics $ 24,883 $  135,744

Source: “Annual Franchising Industry Overview” Bond’s Franchise Guide’s

 

 

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Systems Engineer, MBA in IT Operations and Marketing Intelligence. Experience and continuous interest in IT Operations, Marketing Research, Social Media, CRM, and Strategy. (My comments, shared articles and interests do not necessarily represent neither my clients' nor former or current employers')

Comentarios

2 comentarios en “How Much Franchises Cost

  1. TOP 30 FRANCHISINGS….

    Rank Franchise Name/Description Startup Costs
    1 Subway
    Submarine sandwiches & salads
    $70K-220K

    2 Curves
    Women’s fitness & weight-loss centers
    $38.4K-53.5K

    3 Quiznos Sub
    Submarine sandwiches, soups, salads
    $71.7K-251.1K

    4 Jackson Hewitt Tax Service
    Tax preparation services
    $49.8K-94K

    5 UPS Store, The
    Postal, business & communications services
    $138.7K-245.5K

    6 Sonic Drive In Restaurants
    Drive-in restaurant
    $710K-2.3M

    7 Jani-King
    Commercial cleaning
    $11.3K-34.1K+

    8 7-Eleven Inc.
    Convenience store
    Varies

    9 Dunkin’ Donuts
    Donuts & baked goods
    $179K-1.6M

    10 RE/MAX Int’l. Inc.
    Real estate
    $20K-200K

    11 KFC Corp.
    Chicken
    $1.1M-1.7M

    12 ServiceMaster Clean
    Comm’l./residential cleaning & disaster restoration
    $26K-102.3K

    13 McDonald’s
    Hamburgers, chicken, salads
    $506K-1.6M

    14 Jiffy Lube Int’l. Inc.
    Fast oil change
    $214K-273K

    15 Liberty Tax Service
    Income-tax preparation services
    $42.3K-52.4K

    16 Domino’s Pizza LLC
    Pizza, breadsticks, buffalo wings
    $141.4K-415.1K

    17 Kumon Math & Reading Centers
    Supplemental education
    $10K-30K

    18 Chem-Dry Carpet Drapery & Upholstery Cleaning
    Carpet, drapery & upholstery cleaning
    $25.95K-199.6K

    19 Jan-Pro Franchising Int’l. Inc.
    Commercial cleaning
    $3.3K-49.9K

    20 Coldwell Banker Real Estate Corp.
    Real estate
    $23.5K-490.5K

    21 InterContinental Hotels Group
    Hotels
    Varies

    22 GNC Franchising Inc.
    Vitamin & nutrition stores
    $132.7K-182K

    23 Merle Norman Cosmetics
    Cosmetics studios
    $28.6K-155.9K

    24 Super 8 Motels
    Economy motels
    $280K-2.8M

    25 Snap-on Tools
    Professional tools & equipment
    $14.5K-270.2K

    26 Jazzercise Inc.
    Dance/exercise classes
    $3K-33.1K

    27 Century 21 Real Estate LLC
    Real estate
    $11.7K-522.5K

    28 Taco Bell Corp.
    Quick-service Mexican restaurant
    $1.1M-1.7M

    29 CleanNet USA Inc.
    Commercial office cleaning
    $3.9K-35.5K

    30 Dairy Queen
    Soft-serve dairy products & sandwiches
    $655K-1.3M
    Source: http://www.entrepreneur.com

    Publicado por Nestor | marzo, 23:24
  2. Jani-King

    Year began: 1969
    Franchising since: 1974

    As a student at the University of Oklahoma in 1968, Jim Cavanaugh worked as a night auditor at a hotel chain. While there, he realized that there would always be a strong need for janitorial services as long as there were office buildings. He began marketing janitorial services by day and cleaning buildings with his friends by night. Within a year, Cavanaugh established Jani-King and in 1974 he started franchising. A commercial cleaning service, Jani-King sets up franchisees with a customer base and charges fees depending on the size of that initial base.

    Costs & Fees
    ——————————————————————————–
    Total investment: $11.3K-34.1K+

    Franchise fee: $8.6K-16.3K+

    Ongoing royalty fee: 10%

    Term of agreement: 20 years, renewable

    16885 Dallas Pkwy.
    Addison, TX 75001
    Phone: (800)552-5264
    Fax: (972)991-5723/(972)239-7706
    http://www.janiking.com

    email: info@janiking.com

    Publicado por Nestor | marzo, 23:29

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