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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.

Sure it sounds a lot, but based on the information you have provided in the post, no one can really give you a considered answer. Your retail outlets and all other bits and pieces may only be worth a small amount so 45% is a reasonable take based on what the potential consultant firms will get in hand.

Sure if your operation is worth $1million its a lot, but if the operation is only worth 10,000 dollars it is not much.

Anyone will need more information to provide a valid answer.