What Are The Costs Of Franchising

As a franchise consultant, one of the first things I’m asked by business owners considering franchising is what the costs involved are. I understand…. It’s natural to want a clear picture of the initial investment and ongoing expenses, especially if franchising is new territory. After working with many clients on this journey, I’ve tailored our approach to package up 95% of what you will need to be ready to start selling franchises, ensuring that franchising remains a viable and affordable growth strategy for you.

Firstly, if you want to know what our spectacularly competitive development fee is to franchise your business, you’re going to need to endure a call with me first. Nothing painful, but I'm sure you understand. But what I will do is break down the costs associated with franchising to give you an idea.

Let’s start with the Initial Investment

Firstly, franchising is an investment in the long game but one that can quickly pay off. Our package is one of the most competitive and comprehensive on the market, and it’s designed so that most clients can recover our consulting fee with their very first franchise sale. Our model enables businesses to achieve returns quickly, turning the initial investment into a growth engine with exceptional ROI. Again, while I'm not going to provide specifics on our development fee, I will say that most other franchise consultants charge 2 – 3 times more.

Next let’s look at ongoing Legal Fees

These are actually not as daunting as you may imagine. Our package includes the standard franchise legal documents you will need, but typically, ongoing legal costs are limited to preparing the franchise agreement for each sale, which keeps things straightforward. The bonus? This cost is generally covered by the franchisee, meaning the franchisor doesn’t have to bear the brunt of regular legal expenses.

Next is Marketing Your Franchises

Many business owners worry about the costs of franchise marketing, but it doesn’t have to be excessive to be effective. A targeted, multi-platform strategy leveraging social media and digital channels can achieve great results, and we work closely with you to keep these efforts cost-effective. One of the ways we do this is to limit your campaigns to 2 - 3 territories rather than the entire country, and this is because It’s always a good idea to sell your first franchise close to home, where proximity makes training easier and working through any teething problems as you go. A smart, consistent online presence can reach the right audience without the need for an extravagant marketing budget.

Now let’s look at Other Ongoing Costs

As the franchise network grows, providing support becomes a key focus. One of the advantages of the franchise model is that the network itself typically funds the costs for this support through various fees. This means that head office support functions don’t have to impact the franchisor’s revenue, enabling the brand to provide high-quality support to franchisees and strengthen the entire network. Many of these different support areas can be outsourced, such as marketing, accounts or call centres, which helps keep the head office lite and agile.

There are many benefits associated with a franchise model and financial returns are one of them, if you would like to discuss franchising further, get in touch.