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- What is the
initial cost? How much is the Franchise Fee?
- Will you need
funds while training or until the business begins to
pay?
- Are financial
projections realistic? How have they been arrived at?
Do they allow for rent reviews? These can be
considerable,
- Is projected
income enough for you to live on and provide profit for growth?
Is it enough to pay for any borrowing, i.e. interest and
capital repayments? Do not forget that you must also meet the
costs of equipment maintenance,
- How does the
Franchisor make his money? Does he take a profit from more
than one source? If you pay a management service fee (most
common) is it pitched at a reasonable level?
- Can the
Franchisor’s income support the level of service you need, or have
been promised?
- Is there a
minimum management service fee or a minimum purchase of goods
requirement?
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