More than the franchise fee. The total cost of establishing the enterprise typically includes the initial fee, premises and build-out, equipment, opening inventory, training, and the working capital needed to trade until the business is established. That total is what the substantiality assessment is measured against.
Build the total from the disclosure, then add reality
Franchisor disclosure usually contains an estimated range for the total initial investment, and it is a reasonable starting point rather than a final figure. Add the items that vary by location and by buyer: the actual lease terms, local construction costs, any equipment the franchisor does not supply, professional fees, and working capital sized for a realistic opening period rather than an optimistic one. Keep professional fees, including immigration and legal costs, outside the investment figure in your own planning. The purpose of building this total carefully is not only the application; it is knowing whether the household can fund the enterprise properly and still meet the conditions it has to satisfy.
Hypothetical example: Hadi compares two language-tutoring franchises, one cheap to buy but expensive to equip and market. An opening assessment models the full cost to acquire, start, and operate each business, then compares the investment actually committed to that total. Purchase agreements, franchisor disclosures, equipment quotes, lease proposals, and working-capital forecasts settle the comparison. Do not choose solely by the headline price. A low acquisition price may make a small commitment look less substantial when essential start-up costs are excluded, while an over-funded plan can tie up capital without improving the legal analysis. Decide which business can be documented honestly as viable and non-marginal.