Franchise Facts and Figures - A Study Of Annualized Costs Of A Franchise Investment
New York, NY (PRWEB) May 20, 2015 -- Annualized Costs of a Franchise Investment.
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One of the leading causes of franchisee failures is undercapitalized franchisees. Being able to more accurately predict the financial requirements of a franchise investment and compare the results to available investment capital can lower the risk of being undercapitalized.
Studying annualized costs of a franchise investment is useful to support cash flow analysis and calculate debt payments for franchise investments. Understanding the annualized cost of a potential franchise investment can provide insight into the franchise investment risk and support the need for thorough due diligence.
There are significant variances in annualized costs between franchise sectors. This reflects the multi-faceted nature of business-format franchises in the current market and any analysis or comparative should be focused on similar franchise investments and business offerings.
Franchisors need to better understand how they compare to others in their sector and focus on the differentiation between them and their competition.
"A simple comparison of annualized costs can provide detailed insight into the value of a franchise investment." states Jeff Lefler, CEO FranchiseGrade.com.
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