What franchisees are willing to invest and what they expect to receive in return are often two very different things. Anyone involved in franchisee recruitment will confirm that a significant proportion of potential franchisees have grossly unrealistic expectations as to the investment levels required, what they get for their money and the results that might be achieved. While financial outcomes are always at the top of the list of questions, lifestyle concerns are also of considerable interest.
Establishment costs in franchising range widely from less than $20,000 to well above $500,000. And there is significant choice as to what type of business someone might wish to invest in. Over the most recent past though, preferred investment levels appear to have narrowed. There are now fewer people willing to invest in opportunities at either end of the spectrum which leaves the $50,000 to $250,000 band as the most preferred range (although about 20 percent are still interested in entry costs above this).