Is The Price Right?

Entrepreneur.com:

There’s an old saying that ‘beauty is in the eye of the beholder.’ It has been my experience that ‘value’ is likewise defined by personal perception.

Value is often brought up by prospective franchisees, who commonly ask, ‘Is the
price right?’ or ‘Is the franchise too expensive?’ or ‘How do I know what the
true costs are in a franchise?’ These questions cut to the heart of 1 of the key factors in making a decision about a franchise business: whether or not the fees and costs that must be paid to a franchise are fair, reasonable and appropriate.

Let’s start with the last question 1st. You have a big advantage with a franchise, because the franchisor is required to disclose all fees and costs in the Uniform Franchise Offering Circular (UFOC), which they must provide to you prior to any purchase. This document breaks out the information you need, and the franchisor is subject to legal liability if they don’t make this disclosure accurate and complete.

Check some of the most typical costs and fees paid to the franchisor (or to direct affiliates of the franchisor).