Franchising Kansas City Metro
When presenting educational seminars on the franchise industry, we take the opportunity to ask the group this question, ‘What do you think a franchise costs?” Repetitively, the guess comes back at a range of $200,000-$400,000.
In franchising, you can spend a lot or a little depending on what industry you choose. Your budget is a critical factor when considering your franchise opportunities. The budget should include the total investment required to get your franchise open along with the working capital needed to allow your business to financially sustain itself.
Investment Requirements for Franchising Kansas City Metro
Franchisors have minimum financial requirements before moving a prospective candidate through the franchise opportunity discovery process. The general minimum liquid requirement is $30,000 along with a minimum net worth of $250,000.
You also need to consider maintaining your household expenses while calculating your franchise costs. Expect to maintain 9-12 months of your personal expenses while getting a franchise opportunity up and running. If this time frame is too tight, we don’t recommend evaluating franchising at this time. Some people find they need to adjust their personal affairs and then reevaluate their franchise opportunities a year later.
With franchising, most of our opportunities are within a range of $40,000-$300,000 total investment. This includes the cost of the franchise fee and capital needed to get the local Kansas City franchise business up and running.