Before starting your own franchise business, it’s important to weigh all the expenses beforehand, and ensure that it’s something you can truly afford. After all, many promising franchisees fail because they run out of cash, not because they didn’t know what they were doing.
Starting your own franchise can be more expensive than you’d think, however. Many fast food franchises expect you to be able to spend upwards of half a million dollars just to get the doors open, and it can be even more than that for some of the biggest names in the industry.
That’s why so many prospective franchisees are turning to Cold Stone Creamery. The Cold Stone franchise cost is less than that of most other franchises, making it perfect for first-time franchisees, as well as ideal for the experienced owner looking to expand their portfolio.
The franchise fee is only $27,000, one of the most competitive in the industry. Furthermore, the corporate office estimates that your initial costs will be somewhere between $277-464k – a bargain compared to other options out there.
For comparison, McDonald’s requires a $45,000 franchise fee (almost double the Cold Stone franchise cost) and they estimate it can take up to $1.5 million just to get your store up and running.
This is a huge commitment for all but the most established franchisees, and this sizable cost could put many investors into a deep financial hole they can’t pull themselves out of.
Of course, the costs don’t end when the doors open. You also have to consider the daily cost of running your store. This includes raw materials, employee salaries, equipment maintenance and upkeep – it all adds up fast.
This is another area where Cold Stone distinguishes itself. Specializing in one thing – premium ice cream – means you need a lot less equipment than you would if you had to make 50 different menu items. Not only does this save you money right off the bat, but the savings keep piling up over the life of the business.
Also, a Cold Stone doesn’t require a small army of employees to stay operational. By lowering your daily overhead, more of your earnings go directly into your pocket – and isn’t that the point of becoming a franchisee in the first place?
The savings don’t just show up on the balance sheet, either. Since you’ll have to spend less time wrangling employees, dealing with faulty equipment, and other nightmares common to other franchises, you’ll have more time to spend doing the things you love.
Think about how much your time is worth. As the owner and operator, your expertise is likely worth a pretty penny – and chances are, having more quality free time is one of the things that attracted you to franchising in the first place.
With Cold Stone it’s quite possible you’ll have more time to yourself and more money in your pocket. If you’re trying to add up the Cold Stone franchise cost, that’s a good place to start.