While the exact cost of starting a franchise will differ from one franchise to another, the basics remain the same for most franchisors. You will require funds to start a franchise and ongoing costs to run your franchise business effectively.
Initial start-up costs
These one-time costs can vary according to the franchise industry you choose. Factors determining the start-up costs depend on the sector, real estate needed, building requirements, equipment required, and several other factors.
- Franchise fee -
One of the main reasons you should consider starting a franchise instead of a business from scratch is the brand name, proven business model, and the support that comes with the brand. So, the franchise fee is the cost you pay to access all of the above and more. The things covered under the franchise fee differ depending on your chosen franchise type. Most franchisors cover the cost of your training.
Some of the things included in TaxAssist Accountant’s franchisee fee are -
- Exclusive Territory rights
- Personalized web page
- 6 weeks of initial training
- Laptop and related hardware
- IT support
- Initial marketing campaign
This is not an exhaustive list. To know more about what is included in our franchisee fee, download the prospectus here.
- Professional fees-
You will likely have to hire professionals to help you with all of the many details you need to be aware of when you want to start a business. These include finding a lawyer who can help you review the franchise agreement, real estate agents who will help you find the right property at the right location to build your storefront, or any government organization for permits and licenses. All of these come at a cost.
- Real estate costs -
These costs would be incurred only if you opt for a franchise model that involves opening a storefront.
At TaxAssist Accountants, we help our franchisees choose the best location for their storefronts. Our unique storefront model helps them build their local brand and brings in walk-in customers as we ensure they are located in accessible and busy areas of their exclusive territories. We also have a storefront guide designed to explain everything our franchisees need to know when searching for and moving to a storefront. Among other things, this includes how to plan and lease negotiation to refurbishment and holding a launch.
- Construction costs
This includes costs related to the construction of your storefront office, signage, furniture, insurance, deposits, or anything else related to your storefront.
Other initial start-up costs could include Office supplies, décor, and branding.
On-going costs
These costs would include your day-to-day expenses or anything else you would incur to maintain your business and keep it up and running. This could include:
- Marketing costs
- Employee salary
- Store maintenance costs
- License and permit renewal costs
Looking at all these costs might be a little overwhelming, but remember that the franchisor wants you to succeed as much as you want. So, they would guide you by clearly showing the costs included in their franchise system.
TaxAssist Accountants has a robust support system that guides you through every step of your decision-making process. To learn more about our franchise system and the costs associated with opening our Accounting and Tax franchise, download our prospectus here or contact us to book a free 45-minute discovery session.
Costs illustrated in this article are only the most common and not a complete listing. Please refer to a specific company’s franchise disclosure document (FDD) for a full breakdown of costs associated with opening that franchise.
