The franchise business will contact you by means of email and/ or telephone only to the email address and phone number you have provided.
By submitting the enquiry form you are consenting to send your personal information to the selected franchise business.
You also agree to receive further newsletter email marketing from What Franchise.
As a franchisee, can I earn an income from day one?
Brian Duckett writes:
Your question provides an ideal opportunity to discuss the difference between profit and cash and how these are treated in the funding or business plan you prepare.
One way or another, you’ll need income from somewhere in order to pay your living expenses while everything gets going. Living expenses vary greatly from franchisee to franchisee. Some may have three teenagers at private school and a big mortgage to service; others may be individuals who simply need a roof over their head and something to eat.
If you include these expenses as salary to be drawn from the business, depending on the franchise model being operated, the latter case is more likely to be able to produce sufficient profits, almost from day one.
In my case, when I was a mobile service franchisee who was paid by clients on the day, it was just about possible. The former example above should build in the owner’s salary costs, but a borrowing facility will need to be in place to make up the shortfall before the funds start rolling in.
All this emphasises that every franchisee is a unique business set up that has its particular funding requirements. This is why every franchisee needs to have their unique business and funding plan prepared with the help of professionals who know the franchise in question and how it operates.
Brian Duckett is chairman of The Franchising Centre, part of the world’s largest network of specialist franchise consultants.
You might also be interested in
Answered by Alan Wilkinson
Alan Wilkinson writes: There are two elements to consider here. First is the franchise fee itself, and... read more
Answered by John Pratt
John Pratt writes: It is simply not possible to refer to taking a franchise as an “investment”,... read more
Answered by Louise Harris
Louise Harris writes: It’s quite a lot like choosing a life partner. You need to be interested... read more
Answered by Shelley Nadler
Shelley Nadler writes: Franchise law is a specialist area and it may not be something that your... read more
Exciting Franchise Opportunities
Companies to Consider
£1.2m annual turnover
Third party, subject to status
I Am Döner
£10,000+VAT turnover per week, 20% EBITDA profit
Concept Claims Solutions
Broadway Wine Company
£648,000 per annum with a gross profit of £108,216 and EBITDA of £82,956 by Year Three
From £18-20,000 per week. First year R.O.I 40%
Third party through banks
School of Rock
£15,000 weekly revenue
Burger & Sauce
Get expert franchising news delivered straight to your inbox
Franchise news, advice and new opportunities delivered weekly.
Must Read Articles
Added 3 years ago | 2 min read
Added about 12 hours ago | 2 min read
Added 2 days ago | 2 min read
Find your next business opportunity
Search 100s of UK franchises and become your own boss today.
What Franchise Newsletter
Keep up to date with all the industry news