Q:

What are some costs involved in opening a Chipotle Mexican Grill franchise?

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Quick Answer

When opening a Chipotle Mexican Grill franchise, franchisees should prepare to spend cash on the initial investment, and then have funds in reserve for business operations such as hiring employees and marketing. In general, franchising costs more than owning a business, notes the United States Small Business Administration, or SBA. In addition to leasing or buying a space to house the franchise, new franchisees should expect to work with attorneys to handle the legal aspects of franchising, which may tack on additional substantial fees.

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Full Answer

Of the business franchise opportunities, fast food chains are among the most expensive, notes Business Insider. To begin a franchise in this field successfully, investors should have at least $750,000 in liquid cash. For some fast food retailers, that amount is even more, and may reach more than $1 million. This initial liquid cash is required just for the initial investment and opening the franchise's doors. In addition to this amount, investors may also incur additional monthly fees, which may reach more than 10 percent of gross sales profits.

In addition to the startup costs, legal fees and business operations require additional expenses. Other business expenses new franchise owners may encounter are fees for training new employees, hiring accountants and staff, creating marketing and advertising campaigns and more. These fees, and the cost of daily operations, may easily cost an additional $250,000, states the SBA.

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