If you are looking for a franchise for sale and come across franchise opportunities that have a very low fee for start up then be cautious. When you buy a franchise it is not just a matter of paying a one-off fee for the start up cost. There are ongoing costs that are involved in the operation of any franchise for sale. The most common cause of a franchise to fail is the lack of funds to cover these costs.
The franchises UK costs are mostly determined by the industry or sector that you are going into. The range of franchise opportunities vary hugely for start up costs, a major restaurant chain may need a start up fee of 200,000 pounds whereas a small home based franchise may only cost 5000 pounds. There is a range of costs within the same industry as well, you could pay a lot more for a prime location or the franchise might have grown significantly and therefore the franchise fee has grown. The greater the cost may be down to the franchisor offering a number of services and additional support so if you pay a lower fee then this level may not be the most beneficial.
We will look over a few of the costs associated with a franchise for sale, these include one-off costs and ongoing costs.
There are other costs but it depends on the franchise for sale that you buy, if you have premises then the premises costs like rent, utilities and insurance will be major costs. If you intend to employ staff then the payroll, taxes and training will be costs to you. Make sure you have the right backing and cashflow to take on a franchise as costs can vary hugely, make sure you are aware of all costs before signing that franchise agreement and taking that big step of buying a franchise.
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