The franchise fee is only part of the cost. Work out the full investment first, then how much will come from you and how much needs funding.
What a franchise investment can include
- The franchise fee: the right to trade under the brand, plus training and launch support.
- Equipment or a vehicle: what you need to deliver the service, from kit to a branded van.
- Premises and fit-out: a deposit, rent in advance and shop fitting, where the model needs a site.
- Opening stock: the stock or supplies you need before your first sale.
- Professional fees: legal review of the franchise agreement, and accountancy advice.
- Working capital: money to cover wages, rent and bills until the business pays its way.
The sum
Total investment = what you put in from your own funds + what you borrow.
Costs don't end at opening
Most franchisors charge ongoing fees, such as a management service fee or royalty and a marketing levy. Build these into your forecast. Your franchise agreement sets them out.
Not every cost suits every type of funding
Some costs, such as a van, suit asset finance. Others, such as the franchise fee or working capital, need a loan. We look at each part with you. See Can franchise finance cover the franchise fee and working capital?.
Rough out your numbers
Last reviewed: 8 October 2026