Franchise Note » Franchise Financing

Buy a Franchise: How to Finance Your Purchase

Ivan Widjaya — Fri, 21 May 2010 17:16:05 +0000

Franchise financing

Finally, the search is over – you have done your homework and have found your dream franchise and you just know it has a bright future. The next step would be: buy the franchise; the big question: how will you finance the purchase?

Unfortunately, franchises are stereotypically known as businesses requiring quite an amount of investment and cash – something that not many of us have. Don’t lose hope, though – as an entrepreneur and business owner, you must acquire the all-important skill: the ability to leverage other people’s…

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How to Increase Cash Flow of Your Franchise Unit: Learn from My Mistakes

Ivan Widjaya — Thu, 19 Nov 2009 15:41:14 +0000

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…

9 Questions to Answer Before You Buy a Franchise

Ivan Widjaya — Fri, 18 Sep 2009 05:59:07 +0000

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…

How Much Can A Franchisee Make Annually?

Ivan Widjaya — Mon, 14 Sep 2009 07:34:08 +0000

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…

Franchise Fee Negotiation: Is It Possible?

Ivan Widjaya — Tue, 25 Aug 2009 09:52:43 +0000

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…

Do Not Fall Into the ‘No Franchise Fees, No Royalties’ Trap