So, you want to start your own business? You have heard about the benefits of working with a franchise and you’re interested in researching the opportunities out there for you. Investing in a franchise over starting an independent business offers a wealth of benefits, including valuable support, tested and proven systems, discounts on products and services and more.
What is likely to be your first questions is “How much money can I make?” Even though you have heard great things about franchising, you need to research each concept’s specific earning potential.
A percentage of franchisors provide a financial representation (also known as an Item 19) in their Franchise Disclosure Document (FDD), industry sources report between 20 – 35%.
Through their memberships, FBA members can offer their clients one complimentary hour of accounting consultation. This can help you to uncover the financial stability of the franchise system you are investigating. FBA members also provide a proforma which can help you identify your break-even point. This provides you with an outline of your targeted sales before you even open your doors.
Preparing yourself for a franchise purchase is the best way of ensuring your success, and researching your income potential and ROI is large part of being prepared.
If you are interested in speaking with our Accounting consultant, contact an FBA member here.