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Understanding the Financial Side of Franchising: What You Need to Know

The Franchise Consulting Company

Real Estate and Leasehold Improvements: Many franchises require you to lease a commercial space for your business operations. Marketing and Advertising Costs: Many franchise systems require franchisees to contribute to a national or regional marketing fund. Common Financing Options for Franchisees: SBA Loans: The U.S.

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The Top Mistakes First-Time Franchisees Make and How to Avoid Them

The Franchise Consulting Company

How to Avoid This Mistake: Understand the Full Investment: When reviewing the FDD, pay attention to the full breakdown of the initial investment, including real estate, equipment, inventory, marketing, and training costs. Not understanding these financial obligations can lead to cash flow issues and unexpected financial strain.