One of the mistakes some starting (and most of the time, enthusiastic) entrepreneurs tend to make is overlooking ALL of the start up costs, thinking that they should only pay for the franchise fee, nothing more.
Yes, my franchising company offers food cart franchise for as low as Php26,888.oo, but that is not all of the costs you will incur on starting your own business. Here are the additional start up costs you will need to expend if you want to start a food cart franchise in the Philippines:
1. Rent for your location, usually plus with three months advance, consumable ONLY on your last three months tenancy after declaring pullout (Around Php24,000.00)
2. Renovation costs for the location (Around Php5,000.00 to 10,000.00)
3. Your chest freezer, so you can store your inventory (Around Php20,000.00)
4. Needed processing fees for legal documents (Around Php1,000.00)
5. Crew salary for the first month
6. Utilities and supplies for the first month
There could be more, but those are the most common. That means you will have to prepare an additional Php50,000.00 to 65,000.00 for start up costs aside from the franchise fee. You will also have to prepare another Php10,000.00 as safety fund, just in case you will have to incur more.
Excited to start your business? That’s great! But do your research first!