Cash flow issues are constantly surrounding franchises because of all the obligatory expenses that they are bound to throughout the year. Franchises have the same operating and growth-related expenses as many businesses, but they also have to pay fees to their Franchisor or parent company. This could be a royalty or advertising expense that is taken from their monthly revenue. Depending on the franchise some owners must pay for special training for new employees. The parent company may also require updates to the business that have to be completed in a timely manner.
It is even more difficult for a franchise owner to try and expand to another location because all of the aforementioned fees and expenses may be charged as soon as the new location opens. Combining these expenses with all of the other expenses that come with opening a new business such as purchasing new equipment or furniture. These expenses make it borderline impossible to save money or increase profit margins.
Franchise owners do not have the luxury of scheduling their expenses or choosing which supplier to do business with. They may be given a business model from the franchisor, but the business owner has to figure out how to run his or her own business and operate around these mandatory expenses.
First Premier Funding has helped numerous Franchises operate within these conditions. We know the industry and we know how to help, call today or apply here for a no-cost, no-obligation consultation.