The funds described herein are open to “accredited investors” only, through an offering made in accordance with Regulation D, Rule 506(c) of the Securities Act of 1933, as amended. In purchasing securities through a 506(c) offering, we are obligated to verify any participating investor’s status as an “accredited investor” in accordance with Rule 501 of Regulation D. Investors should consider the investment objectives, risks, charges, and expenses of the fund carefully before investing. We do not make any representations as to the accuracy or completeness of the information contained on this website and undertake no obligation to update the information. Past performance is not an indicator of any future results. All investments contain risk and may lose value. This does not constitute an offer to sell or a solicitation of interest to purchase any securities or investment advisory services in any country or jurisdiction in which such offer or solicitation is not permitted by law.

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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