You are here: Franchisor Book > Finance

FINANCE                    

                          Sub topics       

The heartbeat of the business is found in managing the financial assets of the business. A major goal of any company is to make a profit. If the franchisee is unable to make a profit, then both the franchisee and the franchisor will not survive. Therefore both the franchisor and the franchisee want to make sure that the franchisee generates a profit and increases their own personal wealth.

You, as a franchisor, need to investigate all possible revenues and costs associated with the start-up and the continuous operation of both the franchisor and franchisee businesses. You need to be aware of the financial obligations of franchisees toward franchisors. You need to understand the financial fees which must be paid to your headquarters franchising organization. You must realize the financial commitment which you are making when you begin your business.