Planning for Franchise Costs in Different States


Do franchise costs differ by state?

I would like information on what the cost would be to buy a franchise in Michigan.  What are all the hidden “franchise costs” a first-time business owner could experience?

Franchise costs from state to state

Well, first of all, Michigan is a ‘registration state’ meaning that in order for a franchisor to sell franchises, they must meet requirements beyond those of the Federal Trade Commission. Therefore, it costs the franchisor more to do business in such states, but do not usually cost the franchise buyer more money. There is nothing so odd about Michigan compared to other states that should result in you paying any more for a given franchise.  Franchise costs such as fees and royalties, are essentially the same regardless of the state. The greatest variable in franchise costs found geographically would be real estate (buy/lease) issues, labor and other local expenses.

Franchise costs: a piece of a larger puzzle

Franchise costs are one piece in a larger puzzle as you begin finding your way as a first-time business owner. Self-study is a critical component in your research going forward. If you are exploring franchise options in your particular region of the country, you should also give considerable thought to what makes you tick as an entrepreneur. What are the business areas that excite you and keep you interested in pushing forward in your first-time business venture? What kinds of franchise business might be a good fit for you?

Read through our franchise articles, which include useful information on making financial decisions, including determining franchise costs. As part of your self-study, you would benefit from our Focus Program for Emerging Entrepreneurs, which offers a wealth of insightful articles, as well as audio guidance to help you establish your course and discover “your true entrepreneurial self.”

We wish you all the best in your undertaking as a first-time business owner!




By |March 7th, 2014|Categories: Buying a Franchise, Entrepreneurship, Franchise Information, Franchise Opportunities|Comments Off on Planning for Franchise Costs in Different States