Can I afford franchise ownership?
There are three main buckets of cash flow that are needed to invest in your own franchise.
- Franchise fee – a one time fee you pay to be a franchisee of a company
- Initial investment – what it costs to start the business
- Working capital – you need cash on hand to start your business but also to work with during the life of the business
When it comes to starting your business, you need to have liquid cash of a minimum of $50,000 and a net worth of at least $100,000 as a good starting point. These are minimum figures and could vary depending on many factors.
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Funding Options Are Available
Whenever you are investing in a franchise, there are different financing options available. Whether you have liquid cash flow or you plan to get money from your retirement fund, it is important that you check out financing options that you can afford.
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