How To - Check the Financials in a Franchise

You need to clearly have the financials assessed by your accountant so that the figures that have been put before you by the franchisor, have been thoroughly reviewed and are achievable.

At the end of the day, you are buying a franchise business because you want to make profit. You are looking at building up your nest egg for your retirement and for an asset that you can leave to your family.

You may enjoy the type of business that you are contemplating because it may suit your skills or it may meet your desire to run your own operation and be your own boss. However, if it does not stack up as being profitable then there is every chance that the business will not be financially beneficial, so you may have to think again.

When checking out the financials do the following things:

  1. Look at all the financial statements that the franchise has

  2. Obtain the profit and loss statements and balance sheet figures fully checked out by your accountant and compare them with other similar businesses in that particular industry.

  3. If you need to get detailed f...

    Membership required (FREE)

    The rest of this article is freely available to StartRunGrow members.
    Not a member? Join Here - Its FREE!

How To

Back to Menu