One of the initial questions potential franchisors inevitably ask us is what sort of budget is needed to establish and launch a franchise program. Unsurprisingly, the overall cost can vary widely, depending on how mature your business is, how big (or small) your existing staff is, how quickly you want to grow, and how much of the initial work you want to take on yourself. Other variables include whether you already have a federally registered trademark, how easily you can scale your current website, and how much legal work is needed to establish a new entity to serve as the franchisor.
In addition, you may want to hire a franchise consultant to help you refine your model or develop a sales plan. Consultants may cost anywhere from $5,000 to $50,000. You also may want to partner with franchise brokers to help sell franchises. Brokers typically collect a percentage of the initial franchise fee and may require an up-front and/or periodic retainers.
