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Brad Turville
  • Total posts: 55

Hey there

Franchises are marketed as a business in a box but unfortunately that is not always the case. The first step, which you have already indicated, is a thorough due diligence which I’m sure your accountant is helping you with to identify if this is truly an under-performing asset and if it matches your goals and required rate on investment (….that includes time!)

First timers usually get caught out by the ongoing annual franchise fees like advertising and rebates etc. which should form part of a 3-way cashflow forecast as part of the due diligence and factor in a ‘poor performing scenario’.