Franchise Startup Cost

It is common for there to be confusion between out of pocket cost vs total investment cost for a franchise.

Start costs are considered out of pocket costs, or the amount of money you will need upfront to get started with a franchise. This amount can vary in relationship to your personal budget needs, amount financed, and equipment needs.

Total investment cost includes money out of pocket and loans to finance your initial franchise investment. Your total investment differs from start-up costs, which are required for you to launch your business.

A comparison can be made between buying a home and starting a business. An initial down payment on the home (start cost) will get you moved in, and the mortgage (total investment cost) are required to continue living there.

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Matco Tools Total Franchise Costs

From

Up to

Initial Franchise Fee

$8,000

$8,000

Initial Inventory

$50,000

$84,000

Acquisition and Establishment of Time Payment Reserve

OR

Time Payment Line of Credit

$22,000

OR

$4,700

$22,000

OR

$9,325

Mobile Store Lease

$2,804

$163,584

Computer Hardware

$2,900

$3,600

Computer Software and Internet Service - 3 months' payments

$2,050

$2,825

Insurance - 3 months' premiums

$768

$3,118

Travel, Lodging and Meals (for training)

$179

$2,767

Professional Services (accountant, legal help for you)

$310

$5,852

Fixtures, Supplies, Licenses

$525

$4,400

Additional Funds - 3 months' living expenses (reserve)

$5,000

$13,500

Total

$77,236

$313,646

Matco cannot give any specific numbers because of the variables and the franchise disclosure laws don't allow us to give any specific income numbers.

*Cost per Matco Tools 2023 FDD issued March 6, 2023.

Franchise Investment Overview

Matco, backed by one of the largest companies in the country, handles all franchise investment financing in our office.

If you qualify, Matco can finance:

• Up to $84,000 of the initial inventory

• Time Payment Reserve (all or part)

• $30,000 to cover other startup expenses

Each situation varies based on your finances, however, the investment needed for a new franchisee can be relatively low compared to other franchise opportunities.