A franchise agreement is just a contract. For a simple business model, and in particular where the contract can be simplified to a licence rather than a franchise agreement, the cost can be minimal (about $5,000). Often the expense arises when disclosure documents and other ancillary agreements are required as a result of the complexity of the business model. In my experience, when most businesses embark on a franchising model they are themselves small businesses who need to ensure that the cost of production of the initial agreement does not detract from their overall expansion plans (and the available capital to facilitate that expansion). An analysis of whether or not a simplified agreement is appropriate, has in my experience, been the important first step.