Franchise Glossary
Build-Out
What is Build-Out in franchising?
The construction, renovation, and fit-out work required to prepare a physical location for franchise operations, including installing equipment, signage, fixtures, and brand-required design elements. Build-out costs are one of the largest line items in FDD Item 7 for brick-and-mortar concepts and vary significantly depending on whether the space is raw or already partially improved. Most franchisors have approved vendor relationships and design standards that dictate what the build-out must include.