What your franchise investment really needs to cover

Build the budget in four layers

Entry costs can include the initial franchise fee, training and access to the operating system. Ask for a written list of what is included. Equipment, stock, premises, professional fees, insurance, technology and launch marketing may sit outside that number.

Working capital funds the gap between opening and reliable cash generation. Model a slower-than-expected start and ask existing franchisees when their operations became cash-positive. Their experience is evidence to investigate, not a promise.

Personal runway matters too. If the business cannot pay you immediately, decide how household costs will be covered without starving the operation.

Stress-test the answer

• Request low, expected and high opening-cost scenarios.
• Separate one-off costs from recurring royalties, levies and software.
• Include finance repayments and interest where relevant.
• Model delayed opening, slower sales and an unexpected equipment cost.
• Ask an independent accountant to challenge the assumptions.