Treat the franchise fee as only one line of the full startup cost.
Budget these buckets
- Franchise / brand fee
- Interior, equipment, deposits, licenses
- Opening stock and 3–6 months working capital
- Ongoing royalty (% of sales) and brand marketing levy
- Recruitment and training buffer
Due diligence tip
Ask for a full investment schedule in writing and talk to current and former franchisees about real monthly cash needs. Underestimating working capital is the most common failure mode.
If the brand cannot explain total cash until break-even, pause.
Related: franchise cost Pakistan, franchise fee vs total investment, royalties working capital