The information provided is for convenience only. It is not investment advice or a recommendation, it does not constitute a solicitation to buy or sell securities, and it may not be relied upon in considering an investment in a Cardone fund. Past performance is no guarantee of future results. Any historical returns expected returns or probability projections may not reflect actual future performance. All securities involve risk and may result in partial or total loss. Investment in Cardone funds is available only to independently verified “accredited investors” through an offering made in accordance with Rule 506(c) under Regulation D of the Securities Act of 1933. Before investing in any Cardone fund, prospective investors should consider carefully the investment objective(s), risks, arches, and expenses. While the data we use from third parties is believed to be reliable, we cannot ensure the accuracy or completeness of the data provided. Cardone Capital does not provide legal or tax advice. Prospective investors should consult with a tax or legal adviser before making any investment decision.

FranFinders – What is Total Investment for a Franchise?

As you are searching for a franchise, you undoubtedly have come across the term, “Total Investment.”

Here is a short definition as it relates to franchises. Total investment is the total sum of the “Estimated Initial Investments” that are stated in a franchise’s Franchise Disclosure Document (FDD), Item 7. It is usually expressed as a range. This range usually includes, but is not limited to:

Franchise Fee

Real Estate/Rent

Leasehold Improvements

Utility Deposits

Insurance

Office Equipment/Supplies

Training

Signage

Furniture/Fixtures/Equipment

Initial Inventory

Computer Software

Dues/Subscriptions

Licenses/Permits

Legal/Accounting

Payroll

Operating Funds

 

Each franchisor discloses through their FDD, a suggested range for the Estimated Initial Investment. To know exactly what your cost will be, you’ll need to conduct research to the associated costs related to your market.

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