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The Franchise Fee It also typically includes initial training costs and those associated with location development. All franchise fees are at least $500 by law, but most range from $10,000 to $50,000. They of course differ between franchise brands, and even more so between industries.
California is a franchise registration state. So, you must register your FDD with the California Department of Financial Protection and Innovation (DFPI) prior to offering or selling franchises in California. California charges initial franchise registrants a $675 fee.
The Registration Requirements A filing fee of $675 to be paid to the DFPI. A cover letter stating the applicant's name, Org-Id number, and the franchise owner's fiscal year-end date. A Consent to Service of Process for those who are not from California. An Application Facing Page.
Rhode Island is a franchise registration state, as it requires franchisors to file the FDD with the Rhode Island Department of Business Regulation, Securities Division.
How much does it cost to start your own franchise? Franchise startup costs can be as low as $10,000 or as high as $5 million, with the majority falling somewhere between $100,000 and $300,000. The price all depends on the industry, location and type of franchise.
California Franchise Law California is a franchise registration state. Under the Franchise Investment Act of California, franchisors are expected to file their FDD with the California Department of Business Oversight. The initial registration fee for the FDD is $675, and a renewal fee for the FDD is $450.
These legal documents, along with the operating manuals, staffing, training programs, and marketing initiatives, are your main investments in the franchise system. The two primary documents you'll create are the Franchise Agreement and the Franchise Disclosure Document (FDD).