Franchise Startup Cost Worksheet

By FranchiseFeast Editorial

A printable, fill-in-your-own-numbers worksheet built on the FDD Item 7 categories, so you can add up the real cash it takes to open, plus the cushion Item 7 does not include.

Item 7 of the FDD lists what a franchisor estimates it costs to open, category by category. This worksheet gives you those categories to fill in with your own numbers from your brand's FDD and your own local research, so you total the real cash you would need. It adds no figures of its own, and it includes a second section for the cushion Item 7 leaves out. It is educational, not financial advice.

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The FDD Item 7 categories

Pull each figure from your brand's FDD Item 7 table and your own local research. Item 7 lists a low-to-high range per category, so budget toward the high end.

Initial franchise fee

The one-time fee for the license and brand rights (FDD Item 5, restated in Item 7).

Real estate: rent or purchase

Security deposit and first rent, or a purchase price for the site.

Leasehold improvements and buildout

Construction, remodeling, and finishes to fit the space to brand spec.

Equipment

Kitchen, production, or operating equipment, purchased or leased.

Fixtures and furniture

Counters, shelving, seating, and other fixed assets.

Signage

Exterior and interior branded signs.

Opening inventory

The initial stock or product you need to open.

Supplies

Smallwares, uniforms, packaging, cleaning, and office supplies.

Technology and POS

Point-of-sale system, computers, and required software.

Insurance

Pre-opening premiums such as general liability, property, and workers' comp.

Licenses and permits

Business licenses, health permits, building permits, occupancy certificates.

Professional fees

Your own attorney, accountant, and site or architect fees.

Training expenses and travel

Travel, lodging, and meals for training (tuition is often inside the franchise fee).

Grand opening and initial marketing

The local launch advertising the franchisor requires you to fund.

Additional funds / working capital (initial period)

The Item 7 catch-all covering rent, payroll, and utilities for the opening period, commonly about three months.

Item 7 subtotal$0

Beyond Item 7: the cushion it does not include

Item 7 estimates the cost to open, not the cash to survive the ramp. These are your own numbers to hold apart from the figures above.

Operating reserve past the opening period

Extra cash to carry the business through the ramp, commonly reported as 12 to 18 months to steady cash flow.

Personal living expenses during the ramp

Your household costs, held apart from business capital.

Contingency buffer

A margin for overruns; advisors commonly suggest 20 to 30 percent above the estimate.

Cushion subtotal$0

Total cash you would need

Your own figures, summed. Not a quote and not a projection of results.

The point of a worksheet, rather than a calculator that guesses for you, is that these are your numbers. Pull each line from your brand's FDD Item 7 table, use the high end of every range, and add the cushion Item 7 leaves out. If you want a sourced estimate to sanity-check a cafe against instead, our tools below do that.

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Related tools

Coffee Shop Startup Cost Calculator

Franchise Affordability Calculator

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Before you sign anything

This resource is for general educational purposes only and is not legal, financial, or tax advice. Franchise laws, the FDD, and franchise agreements vary by state and by brand. Review the full FDD and franchise agreement with a franchise attorney licensed in your state and a qualified accountant before you sign anything or pay any money.

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