The initial investment is the total estimated cost required to open and operate a franchise through the first few months. It includes the franchise fee, real estate, equipment, signage, insurance, working capital, and other related expenses. These costs are disclosed in Item 7 of the Franchise Disclosure Document (FDD) and typically presented as a range. Understanding the full scope of the initial investment is crucial for determining whether a franchise aligns with your financial capacity and goals.
Initial Investment
This term
The initial investment includes all startup costs required to open a franchise.
Joe Bailey
Lead Franchise Advisor & Owner
At Franchise Reports, the goal is simple: help you find better franchises.
