Franchise Glossary
Initial Investment
What is Initial Investment in franchising?
The total estimated cost to open and begin operating a franchise unit, as disclosed in FDD Item 7. It includes the franchise fee, build-out, equipment, initial inventory, working capital, training costs, and pre-opening expenses. Ranges vary widely by category, from under $100,000 for home-based service concepts to $500,000+ for full brick-and-mortar locations.