It is an exciting prospect to be purchasing a franchise. Nonetheless, it can quickly transform into a nightmare if you are not careful. Failure to properly consider all the costs of acquiring a franchise can lead to financial ruin. If you would like more information about how much it can cost to acquire a franchise in Missouri, please continue reading, then contact one of our skilled franchise acquisition attorneys today.
What is the average cost of acquiring a franchise in Missouri?
On average, franchise fees are typically between $25,000 and $50,000, but that can vary on the franchise you acquire. This information comes from the Small Business Administration. Like any new business, you will incur one-time startup costs and ongoing recurring costs that you will need to cover as you launch and grow your business. Having a good understanding of the main categories of costs will serve you well.
What are the big three costs of franchising in Missouri?
You will incur many costs as you operate your franchise, but the three major ones are as follows:
- The franchise fee: This is the upfront fee charged by franchise companies to grant you a license to operate their business for a defined period of time. This is simply “the cost of admission” to use the franchisor’s brand and business systems. As noted above, this will cost between $25,000 and $50,000.
- Startup costs: These are the expenses you will incur to get your new business open and operating. Initial investment costs vary widely from franchise to franchise. You can launch some low-cost franchise businesses for under $20,000, while others can cost several million dollars to open. Generally, service businesses will cost far less compared to retail or food businesses due to real estate and buildout costs. According to Franchise Business Review data, the average franchise business will cost $150,000.
- Recurring fees: In addition to the franchise fee and your initial startup costs, all franchise companies charge ongoing fees in exchange for a host of benefits you will receive as a franchisee. These typically include royalty fees, advertising and marketing fees, technology fees and more.
For a full breakdown of many of the major fees you will encounter, you should reach out to one of our skilled franchise law attorneys today.
How can FortmanSpann help you with the cost of acquiring a franchise in Missouri?
FortmanSpann is one of the few firms in the United States that focuses exclusively on franchise law. Our legal team focuses on representing the rights of franchisees all across the country. In the years our firm has been in operation, we have represented clients in various State Courts, Federal Courts, arbitrations and mediations. A legal representative will fight with everything in their power to get you a reasonable deal you can afford.
Contact Our Experienced Franchise Lawyer Today
If you have any franchising issue, contact Fortman Spann, LLC online today to schedule your initial consultation.