Getting the numbers right is so important for franchisees. It’s in fact the whole game, it’s like investing in a property, or a stock or a business – you need to understand what it costs, when you will make your money back and what you will make from there. It’s a simple idea but it’s amazing how misunderstood this part is.
The fundamental dissonance we see is that the amount of zero’s scares off some people. We are here to say that the price is relative to the performance of the business. $10k or $100k or a million are exactly the same provided the profits and earn back potentially scales in the same way. It may feel like a $10k business is safer but if the business only nets you a small return you may never get that back, whereas a million dollar business may be a huge outlay but will begin to return profits back to you provided the franchisor has set things up in a great way for you.
We have extensive modeling around our franchise and can walk you through this if you are interested, just give us a call to line up a time.