Back in 2012, when Elissa Glickman first took the role of chief executive for Glendale Arts â the nonprofit that manages the Alex Theatre on behalf of the city of Glendale â the state dissolved the cityâs Redevelopment Agency, and with it, an annual $415,000 for the venue. The following year, a...
The answer to this question is not so simple because every franchise has its own financial requirements, so the costs to start a franchise are different for every franchise company. In most cases, you will be required to pay a franchise fee, all build-out costs for your location (including furniture, fixtures, and equipment), professional fees, contractor fees, signage, and inventory.
McDonald's, one of the world's largest franchisors, provides a fairly typical example of a franchise arrangement. As of 2013, if you wanted to buy a new franchise, you had to pay an initial $45,000 fee to McDonald's Corp. That cost would be a Section 197 intangible, so you would have to amortize it over 15 years. Once the restaurant was operating, you would have to pay McDonald's a monthly fee of 4 percent of your gross sales.