Cost of a franchise
There is not one answer to what the cost of a franchise is, as all franchises have their own financial requirements.
If you read our Franchise Fees article it will outline the various fees you will need to pay when buying a franchise.
The actual cost of a franchise is determined by a number of factors:
How long has the franchise been established - the more established a franchise, the more the franchise will cost. You will be paying for the track record, experience and the name that they have built up.
Type of franchise - does it requires premises, or can it be run at home, or can it be mobile? Obviously mobile and work from home franchises are cheaper options as you have less overheads to pay so the franchisee fee will tend to be lower.
Location/territory - The location of a franchise is also a factor in determining the cost. Franchises in areas which are more heavily populated such as city centres will tend cost more than one in a more remote area.
Size of a franchise network – the bigger a franchise network, i.e. the more franchisees in the network, the higher the cost will tend to be. This is because by having more franchisees throughout Australia, your brand will be more widely known so you are paying for greater brand awareness.
Franchise resale or new franchise – a franchise resale will tend to cost more than starting a franchise business from scratch. This is because you are buying into a business that has been up and running and in most cases will have an established clientele and be profitable.
You will tend to get what you pay for your money. If buying a franchise with a high investment, the brand will have greater awareness, more franchisees, well-established, excellent track record, provider of comprehensive training and support and earning potential will tend to be higher.