Total Investment
The complete financial commitment required to open a franchise, including franchise fee, build-out, equipment, initial inventory, working capital, and pre-opening expenses.
Related Terms
Franchise Fee
A one-time upfront payment made by a franchisee to the franchisor to obtain the rights to open a franchise location, typically ranging from $25,000 to $50,000.
Build-Out Costs
The expenses to construct and equip a new restaurant location, including construction, equipment, signage, and initial inventory. Typically $250K-$1M+ for QSR.
Working Capital
The cash reserves needed to cover operating expenses during the initial months before a restaurant reaches profitability, typically 3-6 months of operating costs.
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