How much does it cost to start a franchise?

Franchise startup costs range from $4,195 (Jan-Pro commercial cleaning) to over $4.5 million (Planet Fitness). The category matters more than anything else: service franchises average $10,000–$350,000 total investment, food franchises average $200,000–$2.5 million, and fitness concepts run $200,000–$1.5 million. Your state also affects costs — California buildouts run 25% above national average; Mississippi runs 10% below. Use this calculator to get a personalized estimate by category, state, and budget.

What is the cheapest franchise to open by category?

Service franchises are the cheapest to open — Jan-Pro starts at $4,195, Kumon at $73,130. Automotive franchises like Matco Tools start around $50,000 with no storefront. Retail runs $40,000–$800,000 depending on location requirements. Fitness and food are the most expensive categories, with food buildout alone running $200,000–$1.2 million in major markets.

How do state costs affect franchise startup expenses?

State location affects the buildout and labor portions of your startup budget. California adds roughly 25% to buildout costs versus the national average; New York adds 30%. Southern states like Alabama and Mississippi run 8–10% below average. Equipment costs are more uniform nationally. For a $500,000 food franchise, that state multiplier can mean a $100,000+ difference in total startup cost.

How long until a franchise breaks even?

Breakeven for most franchises runs 2–6 years depending on category and investment. Service franchises with low capital requirements often break even in 1–3 years. Food franchises with $1M+ buildouts take 4–8 years. The calculator estimates breakeven using category median revenue and typical operating cost structure. Call franchisees in your target brand's Item 20 list for real numbers.

What costs does the franchise fee cover?

The franchise fee is a one-time payment for the right to use the brand, system, and support. It does not cover real estate, buildout, equipment, inventory, or working capital. For most franchises, the fee represents 3–15% of total startup cost — not the main budget item. McDonald's charges $45,000 on a $1.8M average investment. Jan-Pro charges $3,985 on a total investment starting at $4,195.

Franchise Startup Cost Calculator

Pick a category and budget. Get a realistic cost breakdown based on FDD data from 52 franchises — including buildout, equipment, working capital, and time to breakeven.

Your Inputs

Franchise Category

State

Your Available Budget

What Goes Into Franchise Startup Costs

There are five numbers that matter: the franchise fee, real estate and buildout, equipment, inventory, and working capital. The franchise fee is the smallest line item in most budgets. A $45,000 McDonald's franchise fee on a $1.8M investment is 2.5% of total cost. Don't anchor on it.

Buildout is where food and fitness concepts get expensive fast. A drive-through fast food buildout in a major metro can run $800,000–$1.2M before you turn on the lights. Service franchises with no storefront skip this entirely. That's why Jan-Pro starts at $4,195 and Planet Fitness starts at $1.6M.

Working capital is the number most first-time franchisees underestimate. You need enough cash to cover 3–6 months of operating costs before revenue normalizes. For a franchise doing $500,000/year in revenue with 70% operating costs, that's $87,500–$175,000 sitting in reserve at signing. McDonald's FDD requires $275,000 in working capital on top of everything else.

The state multiplier matters for real estate and labor — California buildout can run 20–30% above national average for the same square footage. Mississippi and Alabama are often 10–15% below. Equipment costs are more uniform nationally.

More Franchise Budget Tools

Franchise Cost Calculator

Filter 52 franchises by budget and category

Franchise Cost Comparison

Sortable table: fees, royalties, revenue for 20 brands

Franchise Costs by Category

Food, retail, service, fitness, and automotive averages

Startup Cost Breakdown

Real estate, equipment, inventory per brand from FDD data

Franchise ROI Comparison

Break-even analysis for 20 top brands

Category averages derived from publicly available FDD disclosures across 52 franchise systems. Updated May 2026.

Embed this calculator

Add this free calculator to your website or blog — no signup required.

<iframe
  src="https://franchisebudget.com/startup-cost-calculator?embed=true&utm_source=embed&utm_medium=iframe&utm_campaign=widget"
  title="Franchise Startup Cost Calculator: Estimate by Category, State & Budget"
  width="100%"
  height="520"
  style="border:none; border-radius:8px; box-shadow:0 1px 4px rgba(0,0,0,.12);"
  loading="lazy"
  allowtransparency="true"
></iframe>

Franchise Startup Cost Calculator

Your Inputs

Where the Money Goes

Monthly Operating Costs

Breakeven Timeline

How This Category Compares

Franchises in This Category

What Goes Into Franchise Startup Costs

More Franchise Budget Tools