Archive for the ‘Franchise Financing’ Category

Cash flow is the life energy of every business, including franchise. Lack of it will drain the life out of your franchise unit – and this is just the beginning.

Franchise unit operation cash flow

In the midst of economic turmoil today, we heard this advice all the time: In order for your business to survive, you should increase sales, cut expenses.

With all due respect – I don’t think the above is entirely applicable for the rest of us.

Increasing sales and cutting expense in today’s difficult economy is very challenging, if not very difficult for the rest of us. I do agree that the logic behind it…

Read more »

Franchise agreement signing

I have just read an article from The New York Times that covers the questions you should ask to yourself and a franchisor before deciding on buying the franchise of your dream.

The article opens up some facts that, to tell you the truth, somewhat against franchising, in a sense that you should take great(er) care to invest your money in a franchise opportunities, as many facts and pitches made by the franchise companies are misleading to the ‘untrained eyes.’

I enjoy reading and benefit greatly from the article and would like to share the 9 questions to ask with you.

9 questions you should answer before…

Read more »

Franchisee income

This question (supposedly) jump out of a franchisee candidate’s mind: How much can I make from this franchise opportunity?

Unfortunately, the answers can be vague, misleading and, in a sense, secretive. The income reports you saw publicly (such as in franchise expos) are either averages or forecasts/projections.

Franchise companies are not in the habit of telling prospective franchisees how much their franchisees are making annually. Even if they do, I’m sure the answer would be in the form of averages, with different methods of calculating averages from one franchise to another.

Unfortunately, averages are misleading and, due to that, I don’t really like anything based on averages. What’s…

Read more »

Franchise deal

Did you know that you can actually negotiate a franchise fee with your franchisor?

While what a franchise offer you is typically a well-set system, including the standard operational procedure, territory-plotting and franchise-related fees, you can actually negotiate on certain things, depending o the franchisor’s policy. This may include your franchise unit’s territory exclusive area and franchise fee.

An article I read from Franchise Business Review, written by Eric Stites, explains that you can negotiate franchise fees with a franchisor. This may include royalties and other fees and terms laid out in the franchise agreement.

As the recession put up much pressure in every business model, including…

Read more »