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

The Franchise Consulting Company

Marketing and Advertising Costs: Many franchise systems require franchisees to contribute to a national or regional marketing fund. You may also need to invest in local marketing efforts to help attract customers to your specific location. 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

Factor in Ongoing Costs: In addition to the initial investment, be sure to account for ongoing costs like royalty fees, marketing contributions, and employee wages. These fees can add up quickly and impact your profitability. Always ensure that you have enough cash flow to cover these recurring expenses.