In order to make your launch successful, you’ll want to be sure you don’t put yourself in a difficult financial position. Opening a business is a substantial investment. There are certain financial obligations and qualification that you’ll have to meet in order to become a franchisee.
Below is a snapshot of some of the costs you can expect to invest in order to get your franchise business off the ground.
The franchise fee of $29,500 is due at the time your agreement is signed. This is based on a number of factors, which may include company expenses for grant acquisition, complexity levels, uniqueness of the business and more.
Assets that are readily convertible are part of your liquid capital. This is helpful in determining whether your business will remain financially stable until you begin to generate a profit. In order to purchase a Jon Smith Subs franchise, you must have liquid capital of approximately $150,000.
As a Jon Smith Subs franchisee, your approximate investment, including your franchise fee would be between the low $300’s and the low $400’s. The range is wide because many factors play a role in determining what your specific costs will be, such as the location itself, rent, equipment, supplies, insurance, etc.
All franchisees are required to pay royalties. As a Jon Smith Subs franchisee, you would contribute 6% of your gross sales revenue to royalties (per month). This covers costs such as ongoing support and other resources provided by the brand and corporate team.
To find out more about how you can own a Jon Smith Subs franchise, give us a call or send us an email. We’re waiting to hear from you and are happy to answer all of your questions.