Opening a franchise can be a great opportunity for those looking to start their own business, but it can come with a hefty price tag. What does it take to open your own franchise concept? Here’s a brief rundown of the major costs involved in becoming a new franchisee.

The Franchise Fee. All franchise companies will charge an upfront franchise fee. This sum is supposed to cover things like training, support, and the ability to use the franchise name/brand. The amount of this fee varies considerably depending on the size, nature, and scope of the franchise business. On the costly end, are lodging franchises ($4-$6 million), followed by full-service restaurants ($700,000 to $3.5 million), and fast food concepts ($250,000 to $1 million). Mobile and home-based business franchises are typically the most affordable, with the average fee starting around, $10,000 dollars.

Professional Fees. Opening a new franchise business may require the assistance and expertise of several professionals, such a qualified lawyer and accountant.

Real estate, Renovations, Furnishings. Depending on the nature of the franchise business, there may be several costs associated with the location such as rent, equipment, furniture, fixtures, design, signage, and landscaping.

Inventory and Supplies. To get the business up and running, there will need to be an initial stock of inventory and supplies.

Miscellaneous Operational Costs. These include a whole bunch of additional expenses needed to get the business up and running, such as enough working capital to cover expenses till revenue comes in, advertising expenses, employee training and payroll.