How Many Coins Does it Take to Franchise Your Business?

It is sometimes thought that it takes at least $100,000 to start a franchise development program, and a substantial additional investment during the first few years, in order to be successful.

If you wish to jump start your program by hiring staff from other franchise companies, applying to all registration states at once, and setting a very large advertising budget, in order to realize a high growth rate, you may indeed need a six figure budget.

However, you can develop a complete franchise program, begin selling in non-registration states, apply to a few registration states, and grow at a rate that you can support, at a much lower cost.

Most of our clients have taken the second approach, and their franchise programs are flourishing. In most cases clients are ready to sell franchises in about four months after we start working together. We can set up a scheduled and economical program for application to the registration states. We also help reduce cash outlay by financing the franchise development costs, typically over 12 months.

Yes, it is necessary to have a budget in order to start a franchise program, but most successful businesses can afford to franchise.  Please see the Fee Plans page for specific information.

A Few Franchising Bits

• When you start a franchise program, your investment can be relatively small, with a small fixed overhead. It is not like starting a new division, or buying a new business, with assets, employees, a lease, etc. In reality, franchise development costs might be considered an asset.
• Franchising is like having a new machine in the corner that can produce large checks from time to time, or even on a regular basis. You will have an entirely new, and legal, way to make money.
• The initial cost of franchise development is a one-time expense. Once you have your franchise program intact, you can sell hundreds of franchises with a minimum amount of annual update cost.
• Franchising should be launched from a successful business model. Franchising should not be used as a "make or break" attempt to solve existing business problems.

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