Personal investment required to open a franchise?
Opening a franchise offers many advantages, but requires greater financial resources at start-up than for a conventional business. In fact, it’s essential to have a capital contribution as well as an entry fee to launch a franchise. Welcome Franchise enables you to select your brand according to your capital outlay.
Personal contribution :
necessary for opening a franchise
A personal contribution is essential for starting up a franchise. Generally ranging from 5,000$ to millions $, this sum covers a number of costs, which vary from franchisor to franchisor. It can be used to cover communication costs, legal structure set-up fees, the purchase of stock if necessary, or any other expenses incurred by the launch of your business.
To this must be added the franchise entry fee or initial royalty. This amount, set by the franchisor, gives the franchisee access to the franchisor’s brand and know-how.
As the future franchisee will need to make this contribution without having to borrow, it’s important to determine how much money he or she will be able to raise. This money generally comes from the creator’s personal funds, but can also be supplemented by grants or investments from other creators.
Find the right franchise for your budget
with Welcome Franchise
So, depending on your investment capacity, you may have to choose one brand over another. In fact, if you have limited resources, it’s best to choose a franchisor with a low capital outlay and a low entry fee. You’ll limit your costs and still be able to launch your business!
To help you in this process, Welcome Franchise enables you to select franchisors according to your level of investment. Thanks to our virtual expo and matchmaking tool, you’ll be able to find franchisors that match your expectations and investment capacity more quickly.
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