Posts Tagged ‘financial analysis’
Franchise Financial Projections: Be Careful
Franchise Financial Projections
Reading franchise business publications and attending franchise expos will give you some ideas on how the bottom line – the financial analysis – of franchise opportunities you are interested in.
As some, if not most, franchises are keen to recruit new franchisees, some of them are utilising their financial projections as tools to pitch franchisee candidates.
My main problem is this is: They are projections and based on averages.
I don’t know how about you, but to me, averages are misleading.
Consider this simple illustration:
Suppose you asked a car dealer how many cars he sells in…



















