Analysis Of Item 5 and Item 7 Costs Within Sectors2015 Facts & Figures Report Published on May 14, 2015
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Analysis of the Initial Franchise Fee and Estimated Initial Investment will play a critical role in any prospective franchisee’s due diligence. Franchisors need to pay close attention that their investment range, coupled with unit economics, are within industry standards.
FranchiseGrade.com has calculated the average Item 5 Initial Franchise Fee and Item 7 Estimated Initial Investment for each sector in the franchise industry based on a sample of 2000 franchise systems.
There are minimal differences between franchise sectors within Item 5 Initial Franchise Fees. This is in contrast to Item 7 Estimated Initial Investment.
Item 5 Initial Franchise Fee
|Initial Franchise Fee||Minimum||Maximum|
|Commercial & Residential Services||$27,367||$44,854|
|Quick Service Restaurants||$31,086||$39,781|
|Retail Products & Services||$25,238||$40,030|
Item 7 Estimated Initial Investment
|Estimated Initial Investment||Minimum||Maximum|
|Commercial & Residential Services||$79,126||$183,405|
|Quick Service Restaurants||$276,658||$710,211|
|Retail Products & Services||$194,816||$537,130|
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