Franchise Cost Calculator

The range across these 20 franchises runs from $4,195 (Jan-Pro commercial cleaning) to $4.5 million (Planet Fitness). Most buyers end up somewhere between $150K and $750K in total initial investment — but the right number depends on what you qualify for, not just what you can fund.

Three costs define any franchise: the franchise fee, the startup investment, and ongoing royalties. The franchise fee is a one-time payment for the brand license. Fees here run $2,000 (Kumon) to $69,000 (Servpro). Don't fixate on this number. It's rarely the expensive part.

The real money is startup investment: real estate, equipment, inventory, and working capital. McDonald's averages $1.8 million between investment low and high. Anytime Fitness runs $378K-$783K. Service concepts with no storefront — Jan-Pro, Matco Tools — spend almost nothing on real estate, which is why their investment floors are so low.

Royalties are the ongoing cost most buyers underestimate. Subway charges 8% royalties plus 4.5% in advertising fees — 12.5% of gross revenue every month. On a $430K annual location, that's $53,750 going to the franchisor before rent, labor, or food. Matco Tools and Kumon charge zero royalties. The royalty structure determines long-term profitability more than any other single factor.

Net worth requirements cut out many buyers from premium brands. Planet Fitness requires $3 million net worth. Taco Bell requires $1.5 million. Chick-fil-A has a $10K fee and no royalties, but it retains ownership of the real estate and equipment — you operate the business, not own it the traditional way. They also reject most applicants.

Start with liquid capital, not brand preference. Under $100K liquid, national brand franchises are mostly off the table. $150K-$300K liquid opens up service concepts. Above $500K liquid, food and fitness brands become accessible.

Service franchises average the lowest investment of any category here — roughly $215K at the midpoint. Food franchises generate the highest average revenue, but carry the highest royalty burden and real estate costs. Automotive (Matco Tools) runs a route-based model with no storefront and no royalties. Retail concepts like Ace Hardware require large upfront inventory alongside buildout costs.

Add royalty percent plus ad fee percent to get your true monthly revenue burden. Subway's 12.5% combined rate, Great Clips' 11%, and Dunkin's 10.9% hit every month for the life of a 10-year agreement. Matco Tools, Ace Hardware, 7-Eleven, and Kumon all run at zero. That gap compounds significantly over time.

Item 20 of the FDD lists every current and former franchisee with contact information. Call at least five before signing. Ask what year one looked like. Most will tell you.

The three-line summary sounds simple: franchise fee, startup investment, royalties. That's the structure on paper. The surprises come before you open.

Real estate buildout runs $50K–$300K for food and fitness concepts — and it almost always comes in over the landlord's estimate. Training travel is often required by the franchisor and rarely reimbursed. Initial inventory for retail concepts like Ace Hardware can exceed $300K before you serve a single customer. Most brands require 3–6 months of working capital in reserve at signing. That reserve requirement alone can add $30K–$150K to the cash you need on day one.

The FDD (Franchise Disclosure Document) is a federal requirement. Franchisors must give it to you at least 14 days before you sign anything. Read Item 7 — it lists every cost category the franchisor is required to disclose. That's where the surprises live. Item 19 shows financial performance data if the franchisor chooses to provide it. Not all do.