If you’re thinking about opening a franchise, then at some point you’re going to have…
One of the key advantages to purchasing a franchise is that you have a good initial idea about how much everything will cost.
As a turnkey investment opportunity, Fully Promoted’s franchisees offer promotional products and marketing services to a huge array of interested businesses. All of your expenses are upfront and manageable, even for first-time franchisees. The liquid and net worth requirements are under $50,000 apiece, and the total investment is competitive.
Economies of scale and the low operational costs that come from streamlined practices and years of perfecting our processes means that you can invest in a Fully Promoted franchise on a limited budget.
Know beforehand that your total investment could vary slightly from the average total investment (~$140,000) of Fully Promoted franchisees. Factors like the size of your store, startup costs, and the part of the country in which you’re looking to open a Fully Promoted franchise location all play a role.
Franchise Costs to Understand from the Start
As you can tell from looking at the above numbers, opening a franchise location can be possible even for cash-strapped, first-time franchisees. Requesting and going over your financial disclosure document can give you a more complete picture of what to expect for setup, equipment, and leasing costs.
Your franchise fee will likely cover the costs of things like training, recruitment, setup expenses, and territory analysis, and ongoing royalty payments allow Fully Promoted to do things like upgrade the system’s technology and improve marketing and advertising initiatives, which have a direct impact on your sales and ability to expand.
Develop an Accurate Franchise Business Plan
Your franchise disclosure document (FDD) is a twenty-three item legal document that details the costs of franchising with Fully Promoted.
When you get your franchise disclosure document, focus on section 6, the Other Fees and Expenses section. This section can help you put together your franchise business plan.
Although franchise disclosure documents are written by franchise attorneys and can be technical (and thorough, running up to hundreds of pages), paying particular attention to section 6 of the FDD can help you craft an accurate franchise business plan and get a loan.
Section 6 of the FDD will get you up to speed on how Fully Promoted coordinates its training and assistance programs. In section 6 of your FDD, you’ll also get a good idea of your advertising expenses.
A lot of these details should be included in your franchise business plan, helping you gain the confidence of lenders who want to know where you’re going and how you plan to get there. For instance, section 11 of your FDD covers marketing and advertising info provided by Fully Promoted that you might need for developing a franchise business plan.
Section 12 of your FDD can also provide information that you can incorporate into a franchise business plan to show lenders you’ve done a market analysis on the area in which you’re thinking about opening a franchise location. These are the kinds of details that give lenders confidence.
Bank Loans, Liquidity, and Collateral
Banks and credit unions are happy to offer loans to franchisees with good collateral—for example, a home mortgage—and some liquidity at the start. From there, government-backed Small Business Association loans can help defray the working capital and equipment costs associated with starting your own Fully Promoted franchise location.
There are a lot of costs and franchise loans options to consider when opening a franchise, so visit our website to learn more!