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Franchise Startup Cost Breakdown

Select a franchise to see what you'll actually spend: real estate, equipment, inventory, marketing, and working capital from FDD Item 7 data.

Select a franchise above to see its cost breakdown.

Where Startup Capital Goes

Startup capital for a franchise breaks down into franchise fee (5–10%), construction and equipment (50–65%), and working capital reserves (15–20%). A $300,000 investment means $15,000–$30,000 to the franchisor, $150,000–$195,000 in buildout costs, and $45,000–$60,000 held in reserve. High-traffic locations in major metros add 30–50% to the real estate and construction line.

Real estate and buildout is the largest variable for brick-and-mortar concepts. McDonald's allocates roughly $1 million of its average investment to real estate. Planet Fitness budgets $1.5 million. For franchises with no storefront — Jan-Pro, Matco Tools — this entire category is zero. The difference between service and food or fitness startup costs is largely real estate.

Equipment costs hit hardest in fitness. Planet Fitness budgets $1.2 million for cardio machines, weights, and equipment. Food franchises run $65K-$565K for kitchen equipment depending on menu complexity. Great Clips spends around $65K. Service concepts with low equipment needs spend most of their startup capital on working capital and the franchise fee itself.

Working capital is where first-time buyers consistently come up short. McDonald's requires $275K in reserve for early operating months before cash flow stabilizes. Franchisees who budget the FDD minimum rather than a realistic operating buffer frequently run into trouble in year one. Budget 25-50% above the stated minimum. The FDD will tell you the floor; the floor is not a target.

The franchise fee is usually 5-15% of total startup cost. It gets the most attention in franchise conversations but has the least long-term impact. The ongoing royalty and ad fee structure repeating monthly for 10 years has a larger effect on lifetime economics than the upfront fee by a significant margin.

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 Franchise Cost Comparison

Sortable table of all 20 brands: fees, royalties, revenue

 Franchise Costs by Category

Food, retail, service, fitness, and automotive averages

 Franchise ROI Comparison

Break-even timelines and profit-based ROI for all 20 brands

Data based on publicly available FDD disclosures. Updated April 2026.

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