Franchisees Pay a Premium to Buy Into Large Chains

Photograph by Hisham Ibrahim/Getty Images

McDonald’s has more than 14,000 franchises in the U.S., while 7-Eleven has 7,800. Those are the types of businesses most people think of when they think about franchises, which helps explain why entrepreneurs buying into those chains pay a premium: The median costs for opening a franchise in the largest U.S. systems is more than double what franchisees can pay to invest in a smaller chain.

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