What is Total Investment for a Franchise? | FranFinders

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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