What is meant by total investment in Franchise Business?

ByFranchise Discovery

In Franchise business the most crucial part which entrepreneurs wants to know is about the total investment. This is because based on this one can decide as when to start, which franchise can be taken, and how to manage the fund.

Now coming to what is total investment in franchise business? So, total investment is the total of the Estimated investments of the initial stage that are mentioned in the Item7 of the FDD (Franchise Disclosure Document). This includes – 

1. Outlet model

2. Space

3. Interior/Project work 

4. Equipment cost

5. License/Permits/other costs

6. Franchise fee

7. Marketing cost

8. Furniture and accessories

9. Software

10. Security deposits(refundable)

These are just a basic glimpse of the range of estimated initial investment, but there are lot more depending upon your choice of brand, location, etc.

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