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How Much Money do you Need to Buy a Franchise

Getting Started with Franchising

There are a number of people who decide to buy a franchise when looking to start a business. When buying a franchise, an individual will be able to get a business that already has an established brand. A franchise will also provide much support for franchisees as well. Like any other business, the cost to buy a franchise is something that an individual must find out. Fortunately for those who are looking to purchase a franchise, the cost to buy a franchise varies. There are franchises that can be bought for under $1,000 and others that may require up to $500,000 in capital to purchase. Therefore, knowing the costs of buying a franchise is vital to determining if a franchise is the right type of business for you.

Franchises UNDER $1,000

The first type of franchise that one can purchase is one that costs $1,000 or less. These are very cost effective franchises that can be started by the average person. Most of these types of businesses are small business opportunities such as network marketing. They can also be small operation where you can work from home.

In many cases, the network marketing franchises will offer a fee of only $200 up front and the purchase of some of the company’s merchandise which will be another $300. As a result, this type of franchise will cost only $500. There are some other business opportunities that will cost about $1,000 to get started.

Franchises BETWEEN $1,000 AND $5,000

For those who are looking to get a franchise, another low cost option is businesses that are offered in the $1,000 to $5,000 range. These are small business opportunities that one can operate from home. Depending on the industry and the overhead, these businesses can be bought for as low as $1,000. However, the ones that require more resources will often charge up to $5,000. Fortunately for future business owners, these franchises are still quite affordable for most people seeking to get a franchise business.

Franchises UP TO $10,000

There are franchises that you can buy that cost up to $10,000. These types of franchises are still quite small and often have little overhead. They can also be run out of your home and are often based on the internet. However, they will often require a considerable amount of capital to not only buy but also operate. Therefore, franchises that require more investment and resources will often be offered at a minimum of $10,000 up front.

Franchises BETWEEN $20,000 AND $50,000

Whenever a person wants to get involved in a business that has a more reputable brand name and can be run either at home or at a physical office location, they will look into franchises that are between $20,000 and $50,000. Franchises at this cost will usually require a considerable amount of capital to acquire and operate. The best thing about these types of franchises is that they can be operated in varied locations.

Franchises OVER $100,000

The most expensive franchises available are businesses that are a part of national or international chains. They also require a lot of things such as equipment, inventory and legal contracts. A franchise with a well-known brand name such as this type of business will usually be offered at $100,000. Some of these types of franchises can be up to $500,000 to purchase.

As a result, many of these businesses will require a loan to acquire which increases the risk for the franchisee. Another thing to keep in mind about these types of franchises is that you will often have to have a certain net worth. Therefore, these franchises are the most expensive, risky and costly of all of the options available.

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