markakis grey jersey

markakis grey jersey -

A lack of franchise history can make validating the performance of a start-up franchise program very difficult. If you're considering a start-up franchise engage the services of a qualified accountant and franchise attorney to assist in the evaluations. ?

An overview of new franchise start-ups:

? There are approximately 300 new franchise concepts that start-up every year.

? New franchises are launched from an existing business that lends itself to franchising.

? It can be enticing to become a part of a new and unique franchise

? Don't expect to be buying the next KFC or McDonalds.

? There can be a number of benefits from getting in on the ground floor of a brand new franchise, but there are also risks.

Evaluate the performance of the business used to design the franchise

Because a start-up franchise is new there is usually limited franchisee history that can be used to evaluate the quality of the franchise. This means that added focus must be placed upon the business that served as the model or launching pad for markakis grey jersey the new franchise. It's critical to obtain as much financial information as possible regarding that business. Use your accountant and franchise attorney to assist in your evaluation. Obtain a detailed evaluation of the business. Know markakis grey jersey what the sales and earnings have been. Offer to execute an NDA if the franchisor resists disclosing financial information. If the franchisor refuses to disclose information than walk away

Detailed scrutiny of the franchise program

How will the addition of a royalty and other fees on the franchisee income statement impact the projected bottom line? This is another reason to have financial information pertaining to the business. If the pre-tax income was 15% before any markakis grey jersey royalty fees then a franchisee could be looking at less than 10% in pre-tax income.