Prospective franchisees typically encounter a range of upfront and ongoing costs when pursuing an Under Armour brand. The main cost drivers include the initial franchise fee, build-out and equipment, inventory, marketing contributions, and ongoing royalties. This guide outlines budget ranges in USD to help plan the total investment and daily operating expenses.
Note: The figures reflect typical U.S. market conditions and assume a standard store footprint and performance level. All numbers are ranges and exclude extraordinary one-time expenses.
| Item | Low | Average | High | Notes |
|---|---|---|---|---|
| Initial Franchise Fee | $25,000 | $25,000–$40,000 | $40,000 | Paid to brand to license the concept |
| Build-Out & Store Setup | $250,000 | $350,000–$500,000 | $1,000,000 | Rent-ready fit-out, fixtures, display systems |
| Inventory & Grand Opening | $150,000 | $200,000–$350,000 | $500,000 | Initial stock plus launch marketing |
| Marketing & Kickoff Fees | $20,000 | $25,000–$60,000 | $100,000 | National and local co-op contributions |
| Ongoing Royalty | 0% | 5–7% | 9% | Based on gross monthly sales |
| Advertising Fund | 0% | 2–3% | 5% | Regional and national marketing |
| Real Estate & Leasehold | $40,000 | $60,000–$120,000 | $250,000 | Deposit, improvements, and signage |
| Training & Other Fees | $5,000 | $10,000–$20,000 | $40,000 | Program enrollment and onboarding |
Assumptions: region, specs, labor hours.
Overview Of Costs
Franchise cost components typically include the upfront franchise fee, store build-out, initial inventory, and marketing commitments. A practical total investment often ranges from roughly $430,000 to $1,500,000 before working capital and financing terms. For a smaller footprint or non-traditional location, the lower end can apply; for a flagship or large-format store, the high end is common. The per-unit estimate should be paired with regional rent, labor costs, and expected monthly revenue to assess feasibility.
Cost Breakdown
Table below shows typical cost clusters and how they may scale.
| Category | Low | Average | High | Notes |
|---|---|---|---|---|
| Materials | $60,000 | $100,000 | $350,000 | Fixtures, fixtures hardware, branding elements |
| Labor | $40,000 | $80,000 | $150,000 | Construction, interior finish, security |
| Equipment | $20,000 | $40,000 | $120,000 | Point-of-sale, displays, tech |
| Permits | $2,000 | $6,000 | $15,000 | Local permitting and inspections |
| Delivery/Disposal | $5,000 | $10,000 | $25,000 | Shipping, waste disposal, packaging |
| Warranty | $1,000 | $3,000 | $8,000 | Manufacturer-backed coverage |
| Contingency | $15,000 | $30,000 | $100,000 | Unforeseen costs |
| Taxes | $8,000 | $20,000 | $60,000 | Sales and local taxes |
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What Drives Price
Key price drivers include location tier, store size, and brand-specific requirements. Real estate costs are sensitive to urban versus suburban settings, while required finishes and security systems influence materials and labor. A notable driver is the initial store format—a smaller kiosk costs substantially less than a full-service showroom. Regional variability in rent, wages, and permit fees can swing total investment by ±20–40% between markets.
Ways To Save
Cost-saving strategies focus on efficient design, phased openings, and negotiated vendor terms. Some practical approaches are to opt for a smaller prototype layout in secondary markets, leverage off-peak renovation schedules, and bundle equipment purchases to secure discounts. Budget for a conservative contingency to absorb price swings in materials or labor. It helps to align timing with brand promotional periods that may reduce upfront marketing contributions.
Regional Price Differences
Regional differences matter when estimating franchise costs. In the Northeast, higher real estate and wage levels commonly push build-out costs upward. In the Midwest, moderate rents and supplier competition can moderate expenses. In the South and Southwest, costs vary by city size and demand. On average, total investments can differ by ±15%–35% across these regions due to rent, taxes, and permitting overhead.
Real-World Pricing Examples
Three scenario cards illustrate typical quotes for different store formats.
- Basic: Footprint around 1,500 square feet in a suburban center. Assumptions: mid-tier finishes, standard fixtures, standard inventory. Initial franchise fee: $25,000. Build-out: $250,000. Inventory: $150,000. Marketing: $25,000. Total: about $470,000–$540,000 before working capital.
- Mid-Range: 2,500 square foot location in a mixed-use corridor. Build-out $350,000–$450,000; inventory $200,000–$300,000; marketing $40,000. Royalty 5–7% of monthly gross; advertising 2–3%. Total: roughly $700,000–$1,000,000.
- Premium: Flagship format over 4,000 square feet in a high-traffic urban area. Build-out $600,000–$1,000,000; inventory $350,000–$500,000; marketing $60,000–$100,000. Total: $1,200,000–$1,900,000+, excluding working capital.
Franchisees should also consider ongoing costs like royalties, advertising contributions, property taxes, and quarterly financial reserves. These ongoing costs can affect monthly profitability and should be modeled in a pro forma with projected sales and seasonality assumptions.
Assumptions: region, specs, labor hours.