Knowledge Base

What are the ongoing costs of running a franchise?

Written by
Sam Stawarz
Published on
June 12, 2023


When you're thinking about buying a franchise, you'll want to know how much it will cost to run your new business. This article will help you understand the ongoing costs of running a franchise.

Franchisee costs

There are several ongoing costs associated with running a franchise. These include:

  • Franchisee costs: This includes the cost of training, support and marketing. Training is usually done at the franchisor's headquarters or through online courses, which can be expensive depending on how much time it takes you to complete them. Support may also involve travel costs if there are no regional offices near you or if you have questions about something specific that needs further explanation from headquarters staff members who live far away from where your business is located; this could add up quickly if it happens frequently throughout the year! And finally there's marketing-it's important for all businesses but especially so when opening up a new location because consumers need time (and exposure) before they trust enough in what you're doing to start buying from you regularly again after being away from them for so long due to being closed down temporarily during renovations/expansion projects etcetera...

Business insurance and compliance

The costs of running a franchise are not limited to the initial investment. There are ongoing expenses as well, including business insurance and compliance, accounting or tax preparation services (depending on whether you choose to do this yourself), signage costs if required by your franchisor's guidelines and other miscellaneous items like legal fees if necessary.

Business supplies and equipment

You will also have ongoing expenses, which include:

  • Business supplies and equipment - Pens, pencils, paper and other office supplies can add up quickly. Don't forget to factor in the cost of business cards, stationery, postage stamps and ink cartridges for your printer or fax machine if you need one. If you have employees they'll need computers as well as software like Microsoft Office (Word documents) plus antivirus protection for their machines that may be updated monthly at an additional cost per person per year depending on how many employees there are in total in addition to any extra software upgrades required by each employee which may include programs such as Adobe Illustrator CC 2019 (£19), Adobe Photoshop CC 2019 (£19) etcetera... Then there's phone bills too! If any staff members travel outside their base location then they might need transportation costs included too since most people don't just walk everywhere nowadays...

Marketing and advertising

Marketing and advertising can be expensive, but it's important to have a plan for how much you'll spend on marketing your franchise. When deciding how much to budget for advertising, consider:

  • The size of your market area (and whether or not there are competitors)
  • How well-known your brand is in its community
  • How strong the competition is within your industry

There are many ongoing costs of running a franchise.

There are many ongoing costs of running a franchise. Franchisees pay franchise fees and royalties, as well as advertising and support costs. They also pay sales and marketing expenses, legal and accounting fees, as well as other miscellaneous expenses.


The bottom line is that there are many ongoing costs of running a franchise. You need to make sure you have enough money to cover all of these expenses, as well as pay yourself for the time and effort you put into running your business. If not, it could be difficult for you to stay afloat once things get stressful or slow down over time.

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