Franchisees are the faceless owners and power behind franchise brands. Traditionally, this has been important because consumers don’t care who owns the business. They just care about product consistency and the brand experience. So why is this important? As investors, knowing more about franchisees is crucial because: You may be interested in identifying franchisee acquisition […]
Franchisors incur a slew of costs related to the initial franchise fee supporting their franchisee before the business opens for operation. The costs franchisors incur in providing advice and services necessary for the franchisee to begin operations can be broadly characterized into 3 buckets – franchisee prospect acquisition costs, training costs, and pre-opening support costs. […]
“Burgerim was once one of the hottest, fastest-growing brands in the U.S. Then its founder left the country, leaving behind a wreckage of unpaid workers, bankrupt franchisees and others struggling to make it work.” – “The Burgerim Disaster” Restaurant Business Jan 17, 2020 Some 40 banks have more than $29M at risk of loss and […]
We’ve been receiving quite a few requests for business valuations of personal service franchises, which includes names such as Massage Envy, Hand & Stone, and European Wax. Although they are 3 different franchises, they have much in common. Before we get to the “comps”, here are the primary areas that we analyze when valuing one […]
Part of the secret to success is finding the right location. When it comes to opening a business, the three most important decisions many franchise partners will make are “location, location and location.” With a signed franchise agreement, a pocket full of financing and a solid plan ready to go, waiting to get started for […]