Understanding the Numbers
Ask yourself: How much do I need or want to make? Start with a total in-pocket goal as your financial target and work backwards. Employ the method used universally by corporations, small businesses and franchisees alike – reverse engineering. Our franchise is scalable – Its growth is limited only by your financial appetite or vision. To learn more, read this.
In purchasing a franchise, the total dollar investment is called “the total turnkey investment.” This includes the franchise fee, the cost of the tools, equipment and fixtures to operate the business, the value of the current goodwill if it’s an existing operation and enough capital to keep the business going until it’s making enough money to cover all the expenses. If you’re going to borrow funds for the purchase, you will need a minimum of 20% to 30% of the total investment in cash out of your own pocket. To learn more, read this.