Compile Initial Investment

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What will it cost to open a new franchise location?

Compile Initial Investment

You have to provide a detailed list of the initial investment costs for opening a new franchise location. Most likely you have these numbers available from when you started your business. Include costs for the period before opening through the initial three months of operations. In addition to the amount, you must specify the method of payment, when payment is due and who is to be paid.

Make sure that the summary is comprehensive, but note what isn't included and that actual expenditures may vary depending on local conditions and other variables. Your lawyer should provide the verbiage and standard cost categories, you should be able to fill in the blanks.

Major categories of investment include:

  • Initial franchise fee
  • Grand opening advertising
  • Real estate rental
  • Construction, architectural fees and related items
  • Fixtures, furniture, equipment and signage
  • Program accessories
  • Office equipment and supplies
  • Opening inventory
  • Insurance
  • Miscellaneous travel and living expenses while training
  • Legal, accounting and other miscellaneous pre-opening expenses
  • Additional funds – three months



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Jerry Mayo