If you have found yourself curious about franchising, you are in the right place! There is a lot to learn about the franchise industry, and while every business is different, understanding some key points surrounding how to get started can help guide your research so you can choose the right franchise for your situation.
The top question that people tend to have when they garner an interest in owning their own franchise is, “How much does it cost?” While every franchise will have different fee structures, initial costs and provided services, understanding a broad overview of franchise fees is a great place to start. Read on to learn more!
What is the Franchise Fee?
Franchise fees—the initial cost that franchise owners must pay—are essentially a licensing fee that give franchisees the right to own and operate the business. Typically, these fees can range from $20,000 to $50,000, but what they include can vary just as much. For example, a Huntington Learning Center Franchise Fee is $36,000; however, not only does that include licensing and rights, but it also includes our robust training and ongoing support platform at no extra cost.
Are There Additional Costs to Opening a Franchise?
Yes. In addition to the franchise fee, there are other costs associated with opening a franchise, such as real estate costs, supplies and equipment, insurance, advertising and more. Many of these fees are paid as they are incurred instead of all at once, but it is important to note when considering your investment. For a Huntington Learning Center franchise, the total initial investment generally ranges from $147,010 to $266,111 depending on several factors, such as location.
How Do I Know If I Can Afford a Franchise?
If you are considering the types of franchises you can afford, the first thing to do is assess your net worth. Most franchisees will use business loans to fund their purchase, and this is an important qualifier for various loan options. It is recommended that franchisees have 20-25% of the initial investment of a franchise, with the rest being covered via small business financing.
If you have questions about investing in a Huntington Learning Center franchise, we would love to chat! Get in touch today with any questions you may have!