The Franchise King®

How Much Money Do You Need To Buy A Franchise? Part 2

how much money do you need to buy a franchise? Part 2
(This is about how much money YOU need to buy a franchise. Not that guy!)
We should probably get this out of the way right now; you don’t need to have “Warren Buffet” money to buy a franchise. Feel better now?

In Part 1 of “How Much Money Do You Need To Buy A Franchise?” – I gave a few examples of the types of franchise opportunities available along with their investment amounts…some basic information. Hopefully enough to get you thinking about what franchises you could potentially “see” yourself owning and operating. I did something else, too…



burger king franchise whopper

(This post may contain affiliate links. Please read my disclosure policy).

I gave you the specific financial requirements needed to qualify for a Burger King® franchise. Would you like to know why?

Because I wanted you (and expected you) to say to yourself, “I don’t have that kind of money laying around!  Plus, I’m not interested in a Burger King or even a McDonald’s franchise anyway.” (Not that there’s anything wrong with either of them)


Figuring out what you don’t want brings you closer to something you do want.

For example, maybe you want to learn more about food franchises…just not ones costing $1 million or more.

One more thing: Have I succeeded in getting you thinking about how much money you have on hand to buy a franchise? Are your wheels starting to turn?


Your Money Situation

You need to figure out your money situation. This isn’t the time for you to “estimate” what you have available to invest. It is the time to determine exactly what you have on hand. But how? With a net worth statement. Putting a net worth statement together will enable you to see everything (finance related) in black and white. Have you done one yet?

Click Here To Use My Free Net Worth Calculator 

You used my free net worth calculator. You now have all of your financial information on paper. You can officially start determining if you have enough money to buy a franchise. Keep reading. I’ll help you do it.


exactly how much money do you need to buy a franchise

How Much Money Do You Have?

What’s your net worth?

When I talk to clients, I tell them that they should have a minimum net worth of $300,000 $350,000 in order to buy a franchise.

(I used to tell my clients $300,000. But, due to prices going up for just about everything in the past decade or so…that’s why $350k)

But, know this; if you only have a $350,000 net worth, your franchise choices are limited.

not enough money to buy franchise


Let’s Take A Short Break

There are two kinds of people in the business world.

The first kind of person will gladly tell you what you want to hear when it comes to your finances, your chances of success etc.

The second* type of person will tell you what you need to hear. The reality of your financial situation, along with your lowered chances of success because of your money situation.

*I’m the second type of person. And, as an added bonus, not only will I tell you exactly what you need to hear…I won’t sugar-coat it.

From the inside flap of my hardcover book, “Become A Franchise Owner!”

Owning a franchise isn’t for everyone. In fact, as Joel Libava says, ‘It’s really not for most people.’ But if it is for you, this book can guide you in starting your own successful franchise business.


So, How Much Money Do You Need To Buy A Franchise?

Here’s how I’m going to do this…how I’m going to answer the question.

I’m going to present several franchise opportunities-along with the total investment needed to start them.

Then I’m going to tell you how much you need to buy them.

Specifically, I’m going to tell you the minimum net worth you should have, along with the minimum amount of money you need to put in upfront-before any loans. (98% of my clients end up obtaining some type of financing for their franchise)

Important: I’m not a financial guru. I’m using my years of experience working with people just like you, 1-on-1. I’m pretending it’s just you and me talking-and this is what I’m recommending you’ll need money-wise, to buy the franchise you’re interested in. So, sit back and pretend you’ve invested in one of my Guaranteed Consultation Packages, and we’re in-session.

7 Franchise Opportunity Examples


Franchise Opportunity #1

Tutor Doctor

This fast-growing home-tutoring franchise opportunity has franchisees in 15 different countries.

The total upfront investment for this home-based franchise opportunity ranges from $68,500 – $141,400.

Your net worth needs to be $350,000. You need to be able to put in $50,000 of your own money.


Free Franchise Quiz
Find Out If You Should Own A Franchise Before You Write That Big Check
Invalid email address

Franchise Opportunity #2

Window Genie


window genie franchise

This growing home-services franchise offers residential/commercial window cleaning (along with 5 other distinctive services) in a generously-sized protected territory.

Your total upfront investment ranges from $89,800 to $139,000.

Your net worth needs to be $350,000, and you need to be able to put $50,000-$60,000 of your own money.


Franchise Opportunity #3

Jimmy John’s Gourmet Sandwiches

how much to buy this fast food franchise

This fast-food franchise is focused on keeping things simple-from its menu to the way they deliver their food.

Total upfront investment ranges from $325,500 – $555,000.

You need to have a net worth of $500,000 with the ability to put in $80,000-$100,00 of your own money.


Franchise Opportunity #4

The UPS Store

The UPS Store owing one

Retail locations provide packaging, shipping, copy/print services, mailbox services etc. for local small businesses and individuals.

Total investment, upfront, ranges from $159,224 – $434,521.

Your net worth needs to be $450,000. You need to be able to put in $60,000-$100,000 before any small business loans.


Franchise Opportunity #5


kids franchise opportunity

Snapology franchisees offer programs that provide the right balance between fun and education to appeal equally to children and their parents.

Specifically, these programs focus on “STEM.” Science, Technology, Engineering, And Math. Plus art, too! So, STEAM.

For Snapology’s home-based, mobile business opportunity in North America, the initial investment ranges from $39,000-$73,500. International costs will vary.

Finally, your net worth should be $350k or more, with the ability to invest $30K + of your own money before any loans.


Franchise Opportunity #6

BrightStar Care

top senior care franchise business

BrightStar Care and the home health care industry have been expanding to help fill the gaps left by institutional care. This top-shelf franchise organization focuses on keeping seniors in their own homes for as long as possible.

management experience is an important ingredient to success. Franchisees need to be motivated and have a certain degree of marketing savvy, so they can build their businesses.

Investment-wise, your initial cost (including the franchise fee) for a BrightStar Care senior care franchise ranges from $93,048 to $154,307, depending on real estate and the labor costs in your local market area. Additionally, you need to have a minimum of $200,000 in liquid assets.


Franchise Opportunity #7

Auntie Anne’s

food franchises auntie anne's

Auntie Anne’s franchise operators serve several different varieties of pretzels, along with dipping sauces and beverages. Locations can be set up in places like shopping malls and airports.

The total cost to open an Auntie Anne’s franchise range from $199,475 – $380,100.

Your net worth needs to be $500,000. And you’ll need to put in $80,000-$100,000 of your own money.



how much money do you need to buy a franchise business

Important Note About My Money Recommendations

If you happen to be interested in any of the franchise opportunities I used as examples above, know this; net worth and cash requirements may differ from what I recommended. But why? Do I know better than the franchisors who’ve setup their franchise opportunities?

No. Of course not. But, I do know this…

It’s better to start off a new business with more money than you need. 

It’s better to have a bigger cushion to fall back on in case your franchise business doesn’t reach break-even when you projected* it would. And there’s this.

You won’t not be able to replace your income for a while. 

(What is a while, Joel?)

Remember when I shared that there were two kinds of people in business-and that I was the second type? The one who refuses to sugar-coat things? Here goes…

Don’t plan on being able to replace your income during your first year in business.

Or in your second year.


Most of the people I’ve worked with in an advisory capacity haven’t been able to make what they were making for a couple of years-at least.

*By using business plan software like LivePlan, you can easily do dozens of different projections and more. On-the-spot.


Franchise Ownership Is A Long-Term Business Proposition

Please don’t by a franchise to fix a short-term problem.

For example, if you absolutely hate your job – and you want out, unless you have a decent* net worth and/or a working spouse who makes at least $100,000 a year, you’re putting yourself in a no-win situation if you need to replace your income immediately.

I define “decent” as having a net worth of at least $500,000.

Image of Warren Buffet, courtesy of Flickr-

Please Share This Article!
follow us in feedly
franchise article written by joel libava
Note: When you buy through links on this website, we may earn an affiliate commission. In addition, I've started to use AI to help me craft better article titles and headings.
The Franchise King® Blog
Get proven franchise research and buying tips, helpful franchising resources, plus the latest franchise news updates and more.
Recommended Reading
How Franchises Work
How Much Is A Franchise?
Pros And Cons Of A Franchise What Is The Franchise Fee? How To Buy A Franchise
Best Franchises To Own

Top 33 Business Ideas
Starbucks Franchise Facts
Featured Franchises!
10 Best Franchise Websites
About Franchise Consultants
How To Read A FDD
Questions To Ask Franchisors
Questions To Ask Franchisees Franchise Discovery Day Franchise Reviews
Top 10 Franchise Buying Tips

Free Franchise Tools Franchise Compatibility Quiz Net Worth Calculator
joel libava

I'm The Franchise King®, Joel Libava. I help prospective franchise owners avoid bank account emptying mistakes.
For 23 years, I’ve been showing people how to make smart, informed decisions on franchises to buy, and I can help you, too!
P.S. I'm not a franchise consultant/broker.

Joel is Highly Principled
There are many people in the franchise business who claim to to be experts in the field. Unfortunately many of them lack both knowledge and integrity. Joel, however, is without question one of the most qualified and principled people I know, in or out of his industry."
- Greg Reynolds, Retired Outplacement Counselor
"Many receive advice, only the wise profit from it."
- Harper Lee