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
What are franchisors’ financial projections for their franchises based on?
Whether franchisors should provide ‘projections’ to potential franchisees is a moot point, but they will certainly be likely to provide xamples of financial performance from within their network, which help with the preparation of the franchisee’s business plan. What these examples should be based on is facts. Those facts may come from the operation of company-owned outlets, the results of pilot franchisees, or the average or individual accounts of franchisees who have been trading for some time. Ideally they should be from a similar-sized outlet or territory to that being discussed with the prospect. They should also demonstrate how the outlet’s incomes and profits grow over, say, the first three years. Wherever they come from, their source should be clearly stated on all projections, and that source should be verifiable by the potential franchisee when doing their research. What the franchisor should never do is suggest to the potential franchisee that they will achieve a particular level of sales because, even if everyone else is achieving it, performance will depend on the effort and application of the individual concerned. Those franchisors who claim to provide ‘guaranteed turnover’ should also make it clear that turnover does not guarantee profit, at any level. One of the many advantages of considering a British Franchise Association member franchisor is that the association’s code of ethics requires that franchisors adhere to the principles outlined above.
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 Chicken Cottage franchise
Yes
Find Out MoreN/A
Request Free Information
Send a free enquiry to Chicken Cottage for further information!
Start your own Dyno-Rod Plumbing franchise
Yes
Find Out MoreN/A
Request Free Information
Send a free enquiry to Dyno-Rod Plumbing for further information!
Start your own Hitsona franchise
Yes
Find Out More£210,000
Request Free Information
Send a free enquiry to Hitsona for further information!
Start your own Kitchen Makeovers franchise
Yes
Find Out More£74,030
Request Free Information
Send a free enquiry to Kitchen Makeovers for further information!
Start your own Premier Education franchise
Yes
Find Out MoreN/A
Request Free Information
Send a free enquiry to Premier Education 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
-
Comeback kings: When is the right choice to invest a brand returning to the UK?
Added one day ago | 2 min read
-
How is the car rental franchise landscape developing for Drivalia?
Added 6 days ago | 2 min read
-
Industry Analysis: The UK children’s services franchise sector in 2024
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