Franchises From $250,000 to $500,000 in the USA

As the low end of the total in Item 7 of the brand's Franchise Disclosure Document (FDD); where a listing covers more than one format, the card shows the lower total, and that figure alone decides which budget page a brand appears on. Under the FTC Franchise Rule, a franchisor may add expenditure tables for differences such as site location and premises size, so other formats of the same brand can land in another price range. Dunkin' is here for its Shopping Center/Storefront restaurant, from $443,000; a Freestanding restaurant starts from $532,400. Both totals exclude real property and the delivery vehicle you must buy, and the low end of building costs assumes a build-to-suit lease in which the landlord incurs most development costs. European Wax Center's from $331,600 is calculated with the $36,000 Franchise Fee for existing franchisees; a new franchisee's fee is $45,000, and the FDD prints no low-end total with that fee. It also assumes you pay only the first month's rent, without a security deposit, and that your landlord provides a partial build-out allowance. Plato's Closet's from $355,700 covers pre-opening costs and the first three months of store operations, without inventory costs beyond the opening inventory or your own compensation. Club Pilates' from $413,289 is for a single studio, covers the Pre-Sales Phase and the first three months after opening, and includes the $65,000 initial franchise fee for a new franchisee's first studio.

Not necessarily. Each brand's page shows the initial franchise fee, but Item 5 of the FDD, Initial Fees, covers all fees and payments, or commitments to pay, for goods or services you receive from the franchisor or its affiliates before your business opens, whether paid in a lump sum or in installments, and states any conditions under which they are refundable. Item 7 also names who receives each payment, so you can add up what goes to the franchisor and its affiliates. European Wax Center's total from $331,600 includes from $54,000 paid to EWC or its affiliates, the low end for an existing franchisee; for a new franchisee, the cover page puts these payments from $63,000. At Plato's Closet, from $48,200 of the total is paid to Winmark: the initial franchise fee plus the initial cost of the point-of-sale system and proprietary software. At Club Pilates, the FDD cover page puts the part paid to the franchisor or its affiliates from $197,901; before opening, you buy the Fitness Equipment & Initial FF&E Package from the franchisor (or an affiliate it designates), from $128,986. At Dunkin', at least $40,340 of the Shopping Center/Storefront total must be paid to the franchisor or an affiliate (FDD cover page); its initial franchise fee for a Standard Dunkin' Restaurant runs from $40,000, depending on the Development Area Type.

Look in Item 10 of the FDD, Financing. The franchisors of European Wax Center, Plato's Closet, Club Pilates, and Dunkin' each state there that they do not offer direct or indirect financing. Under the FTC Franchise Rule, indirect offers include a written arrangement with a lender to finance franchisees and the franchisor's guarantee of your note or lease. Where a franchisor, its agent, or its affiliates do offer financing, including leases and installment contracts, Item 10 states for each arrangement what it covers, such as the initial franchise fee, construction, or equipment; who the lender is; the amount; the annual interest rate plus finance charges; the repayment period; any security interest; whether someone other than you must personally guarantee the debt; and your potential liabilities if you default. Club Pilates' FDD notes that leasing and financing is available for many of the expenses in its Item 7 table. The premises are a separate question: all current European Wax Center franchisees lease their centers, and you find and negotiate your own lease for a location EWC approves.

Some brands in this range offer agreements to develop more than one location, on terms that differ from a single franchise. European Wax Center's Development Agreement for three or more centers requires a Development Fee from $72,000, paid in a lump sum when you sign and not refundable; it covers the full Franchise Fee for the first center and $18,000 of the fee for each of the second through tenth centers, and its low end assumes an existing franchisee committing to three centers. Club Pilates' Multi-Unit Agreement, typically for at least three studios, carries a Development Fee of $10,000 for each studio you commit to open except the first; it is not refundable and is applied toward each later studio's initial franchise fee, and a Multi-Unit Agreement has its own, larger Item 7 table. At Plato's Closet, you sign a separate Franchise Agreement for each store; under the Additional Store Addendum, an existing Winmark franchisee who meets its conditions pays $15,000 instead of $25,000 for an additional store. Item 12 of the FDD, Territory, sets out the conditions under which the franchisor approves additional outlets and any options or rights of first refusal to acquire more franchises. Before committing to several locations, ask the franchisor what happens to the fees already paid if you open fewer than agreed.