When buying a franchise, the key number you will need to know for franchise financing purposes is the initial investment. The initial investment is your “all in” costs and includes the franchise fee and various startup costs such as grand opening, initial inventory, signage, leasehold improvements, supplies, equipment and more.
The initial investment for most franchises is between $75,000 to $500,000 — with about half falling under $250,000. However, the initial investment varies widely by industry and brand, with some franchises at less than $75,000 and others approaching $1 million or more.
