What Amount Should You Invest In A Franchise

McDonald's, South Lake Tahoe CA
photo credit: NNECAPA

I don’t feel that you should invest one dollar more than you are completely comfortable with. The amount you invest should not keep you up at night.

Every franchise is going to be obviously different in terms of yearly fees, supplying the franchise, the initial franchise fee and so on. Generally there is on average a franchise fee of around $45,000, and then some require yearly fees where as others do not.

With banks when starting up a new franchise, they as a general rule of thumb are going to want you to put 20-30% down of your own money. The thing to remember in regards to investing in a franchise is that the more money you invest does not reflect how much income you will earn from the franchise, recently stated on The Franchise King.

Their are many calculations that you have to do in order to figure out what your initial investment should be on any franchise, the amount of money you have to bring to the table, what level of income you feel you will be able to make from that franchise once opened and so on.

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