Franchise Glossary
Initial Investment
The total estimated cost to open and begin operating a franchise unit, as disclosed in Item 7 of the FDD.
The initial investment includes the franchise fee plus all other startup costs such as real estate, construction or buildout, equipment, signage, initial inventory, insurance, licenses, and working capital needed to sustain the business until it becomes profitable. Item 7 of the FDD provides a detailed table showing estimated low and high ranges for each cost component. Prospective franchisees should carefully review these figures and understand that actual costs may vary based on location and market conditions.
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