Buying a franchise: price vs costs

Date published: 13 June 2019

Summary: The upfront price of a franchise may seem like a good deal, but there are also costs that you may have to pay to set up and run a franchise. It’s important to understand the total costs you may have to pay.

Transcript

Great, you've been working hard and you finally have enough money to buy a franchise.

But have you thought about the total cost?

There's the price of the franchise, the franchise fee, and then there are the costs of operating and maintaining the business.

Buying a franchise can be like buying a car.

You pay an upfront price to own the car, but you also pay the ongoing costs of running it.

If you go into franchising without understanding costs, you could be in for a shock.

Costs must be in your disclosure document.

If you don't pay the costs, you could breach your franchise agreement.

Get some independent advice from an accountant and business advisor, and make sure they have franchising experience.

Know the costs, not just the upfront price.

For more information, visit the website.