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:
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.