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BE CAREFUL WHEN BUYING A FRANCHISE
#1
These days thousands of entrepreneurs are looking ways of leaving their jobs and start their own businesses. Many folks do not have experience as business people and seek to purchase a business franchise. Nothing wrong with buying a franchise but there are many mom and pop franchises popping up everywhere throughout the country and some of these newer franchisers have not been business very long. Most franchisors ask a franchise non-refundable franchise fee of $20,000 and up just to use their name and business model. Some franchisors ask for franchise fees over $40,000 and as much as $100,000.

When buying a no name newer franchise, make sure you do your due diligence as of how long the business has been in business and research to see if they have adequate capital and reserves and is not a fly by night company.

 
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#2
Some of the Franchise prices below:
  • Subway - $116.59K - 263.14K

  • 7-Eleven Inc. - $37.2K - 1.63M

  • Pizza Hut Inc. - $297K - 2.1M

  • Dunkin' Donuts - $216.1K - 1.52M

  • Realty Executives International - $20.4K-119K

  • ERA Franchise Systems (Real Estate) - $47.7K-209.9K

  • Murphy Business & Financial (Business & franchise brokerage/commercial real estate) - $45.8K-113.6K

How to estimate initial business? how much it likely will cost to start the business?
The franchise fee, plus additional costs such as real estate, equipment, supplies, business licenses and working capital. Actual costs will vary depending on your individual circumstances. While all the companies on this list can be started for less than $50,000 (based on their Item 7 estimates), that doesn't mean all their franchisees start their businesses for that little. If keeping startup costs low is a priority, examining the table in Item 7 will help you determine how to do it, whether it's running the business from home, buying used equipment or leasing equipment.

It's also important to recognize that this is just the initial investment. It covers only the money needed to get the business up and running, along with operating expenses for a short period--typically around three months. Don't get into a franchise thinking this is all the money you'll ever have to spend. Like with any business, you will have significant ongoing expenses.
 
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#3
Great information. The American Dream is to be your own boss by having your own business. A Franchise is a concept where the franchise fee is paying a premium for the initial business plan and support of the franchisor. Anyone with a great idea on a business concept that works can set up a franchise system and charge $20,000 to $100,000 just for the business idea which is called the franchise fee. Everything else is extra such as the lease, business equipment, start up costs, reserves. In lieu of guidance and support, the franchisor will get a piece of the pie of each franchise owner, often called a royalty. McDonalds seems like it was the first franchise. Now there are thousands of franchises and new franchise concepts are coming up every day.

 
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