---
title: "How Much Capital Is Needed to Buy a Franchise?"
url: https://burnaze.com/article/a4ee701d-cc8e-462d-955c-046ac2d6dec5
source: "1851 Franchise"
original_url: https://1851franchise.com/how-much-capital-is-needed-to-buy-a-franchise-2716989
category: "Franchise Industry"
industry: "Franchise Industry"
topics: ["Finance & M&A"]
published: 2021-10-28T14:09:00.000Z
modified: 2026-11-01T02:13:11.185Z
image: https://newimage.1851franchise.com/cdn-cgi/image/quality=85,format=webp,width=1280,height=720/story/featureImage/b9ba361834e06a327f2f930b66edc8ef3241.jpg
---

# How Much Capital Is Needed to Buy a Franchise?

**TL;DR:** Startup costs for franchises can range from $10,000 to over $1 million, with various fees including real estate, leases, and equipment. Most people seek outside financing when they purchase a franchise, and many loan options are available.

*originally published in 1851 Franchise on 2021-10-28. [Read the original](https://1851franchise.com/how-much-capital-is-needed-to-buy-a-franchise-2716989).*

## Story

Whether you’re on a tight budget or have $1 million in capital sitting in the bank, there is no shortage of investment opportunities available in the franchise world.

Startup costs vary, but they typically range from $10,000 to more than $1 million. Other fees include real estate, leases, franchise fees, equipment, inventory and insurance.

Most people seek outside financing when they purchase a franchise, and many loan options are available, including rollover as business startups, Small Business Administration loans, home equity loans, a second mortgage, using your own savings or financing through the franchisor.

## Entities

- 1851 Franchise (publication)
- Franchise Industry (sector)
- franchise costs (topic)
- Small Business Administration (regulator)
- loan options (topic)
- startup financing (topic)

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Originally reported by 1851 Franchise (https://1851franchise.com/how-much-capital-is-needed-to-buy-a-franchise-2716989). Summarized by Burnaze (https://burnaze.com/article/a4ee701d-cc8e-462d-955c-046ac2d6dec5).