FranchiseBudget

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

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.

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

Data: Franchise Disclosure Documents (FDDs), SBA Franchise Loan Data, FRANdata Industry Benchmarks, IFA Economic Reports

Last updated: March 2025

How we calculate this · FDD Item 19 data, where shown, is historical. Past unit performance does not predict your results. Read the full FDD before signing.