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
Does a franchisor have to provide me with cash flow and income projections?
There is no legal requirement on franchisors to do this. Indeed, franchisors’ lawyers will generally encourage them not to participate in the preparation of cash flow and income projections because, they argue, these are the franchisee’s projections with which each franchisee must be comfortable and should not be imposed by a franchisor. All that the franchisor should do is to provide some ‘raw’ data, which would enable a franchisee to establish his own projections. This data would consist of average start-up costs, turnover and margins. Franchisors need to be very careful in providing any financial information to ensure that it is based on average performance and that they do not paint too glowing a picture of their franchise by providing performance data that relates only to the top performing franchisees. If franchisors were to do this it could well amount to misrepresentation, which would entitle a franchisee to claim damages. Franchisors must make it clear to franchisees the basis on which figures have been prepared and should not rely simply on disclaimers in relation to the figures or on contractual provisions that seek to limit the franchisor’s liability for misrepresentations. Equally, franchisees should not assume that figures prepared by franchisors are in any sense guaranteed.
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 The Travel Franchise franchise
Yes
Find Out MoreN/A
Request Free Information
Send a free enquiry to The Travel Franchise for further information!
Start your own Aspray Limited franchise
Yes
Find Out MoreN/A
Request Free Information
Send a free enquiry to Aspray Limited for further information!
Start your own Oodles franchise
Yes
Find Out MoreN/A
Request Free Information
Send a free enquiry to Oodles for further information!
Start your own Cakes & Bakes franchise
Yes
Find Out More£65,000
Request Free Information
Send a free enquiry to Cakes & Bakes for further information!
Start your own Amigos Burgers and Shakes franchise
Yes
Find Out More£480,000 - £1m (from 14% profit)
Request Free Information
Send a free enquiry to Amigos Burgers and Shakes 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
-
Why business coaching is a springboard to franchising success
Added 2 days ago | 2 min read
-
How to run a successful dessert restaurant
Added 4 days ago | 2 min read
-
Extra Help targets further expansion
Added one week 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 -
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