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.
Close
At what point during a five-year franchise agreement should I expect to recoup my investment?
This will vary, depending on the nature of the franchise you’re taking on.
A low cost business could return its investment and start making profits within a few months, certainly within the first year. A premises-based business, which also requires fitting out and employing staff, will take longer.
Indeed, the latter may require an initial term longer than five years to satisfy both yourself and your lenders that the investment will be returned before there’s a risk that the rights to operate the franchise will end.
The way to calculate the time in any particular case is to prepare a detailed financial and funding plan for the outlet in question. This can be done with the help of the franchisor, its recommended consultants or your own accountants, but the majority of the information should come from previous openings. You may even want to check the assumptions with existing franchisees, who have been through the process in practice.
Remember too that it’s not just when the investment will be recouped that’s important. You will also need a cash flow forecast to make sure you have sufficient working capital available to ensure the business can continue trading until that happy day comes along.
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 Vincent Anthony
Vincent Anthony writes: The property market has wide appeal because it is relevant to everyone: we all... read more
Answered by Louise Harris
Louise Harris writes: Richness or wealth is relative. We always want more, I guess. So, what is... read more
Answered by Shelley Nadler
Shelley Nadler writes: A concern that businesses may have when deciding to franchise their business, is the... read more
Answered by Alan Wilkinson
Alan Wilkinson writes: There are two elements to consider here. First is the franchise fee itself, and... read more
Exciting Franchise Opportunities
Start your own URBAN Fresh Burgers & Fries franchise
Yes
Find Out MoreN/A
Request Free Information
Send a free enquiry to URBAN Fresh Burgers & Fries for further information!
Start your own No Letting Go franchise
Yes
Find Out MoreN/A
Request Free Information
Send a free enquiry to No Letting Go for further information!
Start your own PACK & SEND franchise
Yes
Find Out MoreN/A
Request Free Information
Send a free enquiry to PACK & SEND for further information!
Start your own Smoke & Pepper franchise
Yes
Find Out More£230,000
Request Free Information
Send a free enquiry to Smoke & Pepper for further information!
Start your own Gourmet Sushi franchise
Yes
Find Out More£1,900,000
Request Free Information
Send a free enquiry to Gourmet Sushi for further information!
Companies to Consider
Get expert franchising news delivered straight to your inbox
Franchise news, advice and new opportunities delivered weekly.
Must Read Articles
-
50 franchises with funding plans in 2024
Added 2 months ago | 2 min read
-
How Fun Fest’s franchisees are achieving £500,000 turnovers
Added 4 weeks ago | 2 min read
-
How URBAN went from hometown hero to national name
Added one month ago | 2 min read
Franchises by Minimum Investment
Find your next business opportunity
Search 100s of UK franchises and become your own boss today.
-
Under 10k
Starting a franchise doesn't have to be costly
Click here -
Under 20k
A mid-range investment for the more experienced
Click here -
Under 50k
If you have experience and more to invest
Click here -
Over 50k
If budget is not an issue, then don't miss these
Click here -
Local Franchises
Find the perfect franchise in a location to suit you
Click here
What Franchise Newsletter
Keep up to date with all the industry news