As you are searching for a franchise, you undoubtedly have come across the term, “Total Investment.”

Here is a short definition as it relates to franchises.

Total investment is the total sum of the “Estimated Initial Investments” that are stated in a franchise’s Franchise Disclosure Document (FDD), Item 7. It is usually expressed as a range.

This range usually includes, but is not limited to:

Franchise Fee
Real Estate/Rent
Leasehold Improvements
Utility Deposits
Insurance
Office Equipment/Supplies
Training
Signage
Furniture/Fixtures/Equipment
Initial Inventory
Computer Software
Dues/Subscriptions
Licenses/Permits
Legal/Accounting
Payroll
Operating Funds

Each franchisor discloses through their FDD, a suggested range for the Estimated Initial Investment. To know exactly what your cost will be, you’ll need to conduct research to the associated costs related to your market. Use the help of one of our franchise consultants; they can set you on the most efficient path to get the right information.