You may not want to read this, but here we go; franchising a business is not cheap, both for franchisor and franchisees.

I have to say that you will have to part of with a significant amount of money both initial and ongoing.

Don’t be scared though because although it is expensive, franchises are one of the most profitable businesses out here.

Nonetheless, before you commit to anything, it would be best if you first find out the costs associated with franchising

Cost of recruitment

If you have a franchising idea or want to add more units to the brand name, you will need recruit franchisees,and this will cost money.

You have to print out adverts so people can know that you’re recruiting. You’ll also have to hire staff,i.e., accountants, solicitors,etc. all these cost money.

Buying fees

As a franchisee, you’ll have to pay certain fees upfront to buy into and operate under an established business brand.

The cost of buying into a brand vary from business to business, but the price currently ranges from around 20,000 to 50,000 Australian dollars.

This is not small money, which means that you’ll have to think hard about it and even involve your franchise solicitor if need be.


It is a norm in franchising for franchisees to pay certain fees to the parent company every agreed period.

Usually, these payments are determined based on the profits the franchisees make. This, therefore, means that the more profits you make,the more you pay in royalties.

So you have to ensure that you get a fair deal when soliciting from franchising. There are several franchise legal services in Australia that can help you get a fair deal.

Legal fees


This is an inevitable cost of franchising in any part of the world,andboth the franchisor and the franchisee incur it.

You see, the success of any franchise is mainly dependent on the quality of agreement drawn.

The only way involved parties can ensure this quality is by involving the services of a legal expert.

They’ll not only help draw the agreement, but they’ll also negotiate it to help come up with a deal that’s fair for both parties.

So as you can already tell, the legal fees make up the monies you’ll be paying for franchising legal services.

Other costs

There are additional variable costs associated with franchising a business. There are the product fees that are dependent on the type of franchising agreement. Some require the franchise to buy goods from the franchisor and sell under the brand name.

The working capital is also another thing that you’ll have to consider because you will need a reasonable amount to kick start your operations.

In summary,

I want you to understand that while you’ll spend more to franchise your business, the rewards after that often tremendous and very fulfilling.

So make sure you do it right by first understanding its underlying costs and then making the right decisions.

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