How to read a franchise opening-cost range

An establishment range can be useful during early franchise enquiries. Trouble begins when the lower figure is copied into a finance application without linking it to a site, floor area, equipment specification or opening timetable.

Ask what sits outside the range

Request a written breakdown and look for professional fees, lease deposits, landlord requirements, local approvals, signage, staff recruitment, training travel, initial stock, pre-opening marketing, insurance and VAT. Also ask whether the stated working-capital allowance begins before or after the first payroll.

Some omissions are reasonable because a franchisor cannot know the chosen premises. They still need a placeholder in your own cautious case.

Match the estimate to the proposed site

A standard fit-out allowance may assume a shell condition that the actual premises do not have. Electrical supply, extraction, drainage, accessibility works and backup power can change the cost. Record which site facts are confirmed and which remain subject to contractor inspection.

Date every version

Applications can contain an old franchise estimate, a newer lender request and a contractor quote based on another floor plan. Mark the date and source of each figure. Reconcile the latest total back to the amount shown in the application form.

The goal is not false precision. It is an honest record of what is quoted, what is allowed and what remains exposed.