Secret To Franchise Success Franchise Agreement Attorney Reveals All

Financial Implications and Real-World Examples

The financial implications of a franchise agreement can be significant. For instance, McDonald's requires an initial investment ranging from $1 million to $2.2 million, including a $45,000 franchise fee¹. On the other hand, a Subway franchise might require a lower initial investment of $150,000 to $328,700, with a $15,000 franchise fee². These examples illustrate the diverse financial commitments required across different franchises.

In addition to the initial costs, franchisees must consider ongoing expenses, such as royalty fees. For example, Dunkin' Donuts charges a royalty fee of 5.9% of gross sales³. Understanding these financial obligations is crucial for budgeting and forecasting your franchise's profitability.