For many would-be business owners, the world of franchising is very attractive, as it offers ready-made businesses with proven profit potential. Many of these same prospects, however, are shocked when they discover the “true” cost of owning a franchise.
It’s not hard to see where the sticker shock comes in. Consider all of the things that factor into how much a franchise will cost you:
- The franchise fee (a set, non-refundable fee the corporate office charges you)
- Startup costs (including finding and leasing a space, building a store, buying equipment and supplies, and more)
- Marketing fees (and with most franchises, you’re on your own in terms of marketing your specific store)
- Employee costs (including pay – and some franchises need a small army of employees, insurance, and training)
Is There A Better Way?
There are franchises that can offer a ROI comparable to McDonald’s – maybe even superior – without requiring you to take a huge risk upfront. Consider the Cold Stone Creamery® franchise cost, for example.
They also require a franchise fee, but it’s only $27k – just over half of McDonald’s. At most, they estimate it will cost $464k to start up your location, meaning you can save over a million dollars right off the bat. This gives your business a much higher chance of success, as you won’t be trying to dig yourself out of a huge hole from Day One.
Not only do you start off on firmer financial footing, but the savings can add up over the life of the business.
Compare the menus, for example – a typical burger chain has dozens of options, from cheeseburgers and fries to dessert to a dedicated breakfast menu. This means you need a ton of dedicated equipment for every item, not to mention storage for the ingredients. It adds up fast.
At Cold Stone, you have an ice cream product line. This means less equipment, less expensive storage, and less manpower. That’s a lot of savings – which can translate directly into money in your pocket.
Count the Cost
Before you jump into the franchise game, be sure the numbers add up. The Cold Stone Creamery franchise cost is so much lower than many competing options that it makes it one of the strongest plays on the market today.
Who would’ve guessed that a little ice cream shop could make for the perfect dragon slayer?