How Franchise Consulting Helps New Entrepreneurs

The brand is not the investment

You are not buying a brand. You are buying the economics of one outlet in one location under one agreement. A strong brand with poor terms in a weak catchment is a bad investment; a modest brand with good terms in a strong catchment can be an excellent one.

Model the total capital

Franchise fee, fit-out, equipment, deposits, initial inventory, licences and at least six months of working capital. Entrepreneurs who budget only the franchise fee run out of money in month four, which is exactly when the outlet starts to find its footing.

Read the agreement for the exit

Territory protection, renewal terms, transfer rights, supply obligations and termination conditions matter more than the fee. Read the clauses that apply when things go wrong, because those are the ones you will rely on.

Verify support by asking existing franchisees

Ask the franchisor for a list of current franchisees and call several — including one who is not in the promotional material. Training quality, supply reliability and marketing support are best described by people already living with them.

Where to go from here

If this touches a decision you are currently making, our franchise consulting team can look at your specific situation. A first consultation is confidential and carries no obligation.