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So let’s review for a minute. By now, you’ve:
- Started discussions with your family and decided that you might be interested in owning your own business, and
- Accumulated a nice list of opportunities to consider.
Now we’re on Step #3. The analysis phase. I recommend starting with an Excel spreadsheet, each franchise disclosure document (FDD) and an old-fashioned pen and paper. Your spreadsheet should include the following columns (and maybe more):
- Company name
- City of available territory (if not your current city)
- Current number of open franchises
- Franchise fee
- Total initial investment
- Total investment
- Amount of cash you have available
- Royalty fee
- Advertising fee
- Other standard fees
- Lease fees (if necessary)
- Legal fees
- Potential salaries, overhead, etc
- Equipment cost
- Past litigation (if any)
This list is just the basics and will provide a good snapshot of the fees, time and other requirements to get started.
Next we’ll look at taking a snapshot of the competition, market potential and other important factors. Feel free to contact me directly with any questions!