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James Millar
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Heaton, post: 210276 wrote:
Hi Guys,

First time posting a thread on this forum.

I need some advice in terms of franchising my business. We got 3 retails store within 3 years however now I am out of cash flow to go forward. I’ll need to wait at least 2-3 years to recoup my funds for any future expansion.

Right now 2 x legal/franchising consultant firms has made an offer to franchise my business. However they want to take 45% equity. The percentage was determined by an “x” amount of what the franchising agreement / consultant will cost etc.

It difficult for me to validate these “x” amount without bench marking against something. I was hoping if anyone has franchised their business before can share some light on me.

I worried of making the wrong decision and under sell myself.

That’s an awful lot of your business to trade away and it doesn’t leave much room for future capital raising whilst maintaining general majority of shares. Is there another way?

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