Why do some franchises cost more than others?
Mar 23 2006
Given the vast range of businesses available and the sectors they operate in, this is inevitable. For instance, it will cost more to establish a high street location than setting up at home or from a vehicle. There is also the varying lengths of the initial training and the costs a franchisor will incur as a result - a one-week training programme will obviously be cheaper than a one-month programme.
A large brand name will also cost more than a lesser-known business in view of the inherent value of the brand. You should be aware that the average franchise fee is circa £15,000, so if a franchisor charges a higher figure you should assess whether it’s value for money. Any franchisor should be able to break down the costs of a franchise for you or provide you with all the information you need to conduct this analysis yourself. If a 'franchise package' is stated you should find out exactly what you're getting for your money, so there are no assumptions or surprises. A package should include the operating licence and training as standard.