Guide · Startup costs · FDD Item 7
How Much Does a Franchise Cost?
Across 218 franchise systems with an Item 7 range in the current dataset, the middle disclosed starting range is $194K to $467K. That is a filing-based planning range, not a quote or a prediction.
The direct answer
FDD Item 7 combines the franchisor's estimated startup costs, including the initial fee and other pre-opening costs. In the 218 current records with a complete Item 7 range, disclosed minimums run from $2K to $25.0M at the far upper end; the range for one brand is not a forecast for another location.
- $194K
- Middle disclosed low end
- $467K
- Middle disclosed high end
- 63
- Systems starting below $100K
According to the Federal Trade Commission's franchise disclosure framework, Item 7 is the place to find the franchisor's estimated initial investment. It is more useful than the headline franchise fee because it is designed to show the full pre-opening range the franchisor expects a prospective franchisee to fund. PlainFranchise records the Item 7 range from the available FDD data and keeps the range separate from ongoing fees and any Item 19 revenue disclosure.
What Item 7 covers
Item 7 is a startup-cost disclosure, not an operating forecast. Read its line items alongside Item 5 (the initial franchise fee), Item 6 (other fees), and Item 19 when the franchisor voluntarily provides a financial performance representation. A low starting figure does not establish affordability, profitability, local demand, financing eligibility, or the cost of a particular site.
Where the current data sits
How to use the range without over-reading it
- Start with the full low-to-high range. The low end is not a guaranteed all-in price, and the high end is not a maximum for every real estate market or buildout.
- Separate startup cost from ongoing fees. Royalty, advertising, technology, renewal, transfer, and other fees belong in Item 6 or the franchise agreement; they are not interchangeable with the Item 7 range.
- Read Item 19 as a disclosure, not a promise. When revenue information is available, it is gross revenue rather than franchisee profit and may describe only a stated subset of units.
- Verify the current FDD before acting. These figures are a research starting point. Review the brand's current filing and have a qualified franchise attorney and accountant assess the particular agreement and location.
Compare like with like
A cost comparison is strongest when the brands are being compared on the same disclosed basis: their Item 7 range, the Item 5 fee, Item 6 ongoing charges, and Item 19 disclosure status. The lowest starting range is therefore a useful filter, not a recommendation. Pair it with the system's outlet changes in Item 20 and the terms of the specific agreement before forming a decision.
Source: Publicly available Franchise Disclosure Documents, FDD Item 7 Publicly available Franchise Disclosure Documents, FDD Item 7 Current dataset vintage: 2026-07-05. Amounts are franchisor disclosures, not editorial estimates.
Next steps
Use the Item 7 range to narrow a research list, then test the full disclosure rather than a headline cost.
- Compare the 50 lowest disclosed startup ranges, with the high end, franchise fee and royalty shown beside each brand. See lowest investment
- Read the FDD item-by-item before using any financial figure in a buying decision. Understand an FDD
- Compare two brands side by side after you have reviewed their current disclosures. Compare franchises
This guide is informational, not legal, financial, or investment advice. A disclosed range cannot predict a particular location's cost or outcome.