How Much Should You Invest in a Big-Name Franchise?

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A franchise business from McDonald’s, Dunkin’ Donuts and The UPS Store require an initial investment between $177,000 and $1 million.

Sign business opportunities are a good alternative if you’re looking for other less expensive options. While advertising has become more diverse with the advent of online tools, many companies still use banners, in-store graphics and other printed materials for promotional purposes.

Top Brands

Depending on the location, you would need to spend between $1 million and around $2.2 million for a McDonald’s franchise. The company began to open its business for franchising in 1955. Its number of franchised stores in 2017 reached 507 units.

Aside from diverse marketing support, franchisees can benefit from the fast food giant’s globally recognized brand. A Dunkin’ Donuts is less expensive at a franchise cost of between $228,620 and almost $1.7 million. However, its franchising fee may cost up to $90,000.

Like McDonald’s, franchisees receive different marketing support tools, particularly for online campaigns. The UPS Store has a cheaper franchising fee at around $30,000. Its required initial investment costs at least $178,000.

Business Advantages

Franchises are a better option if you are concerned more about the business’ success rate than the required investment. You would no longer worry about retaining new and old customers since many people are already familiar with the brand.

Startups are a different success story. Based on statistics, a quarter of new businesses shut down within their debut year, while 50% close within five years. You would also need to handle several business aspects almost all at once, from marketing campaigns to taking care of business requirements.

A franchise opportunity will be a good fit if you don’t mind paying recurring fees to keep your license, as well not liking to worry about the progress of your business. How much are you willing to pay for a franchise?