Planning and working on your company’s projection figures for future franchisees is one of the most important things you can do when franchising your business.
Taking the average turnover of all the current franchisees is a great way to do this! This gives a true picture of potential taking into account circumstance, territory area and individual work patterns. If you do not currently have any franchisees, the figures can be taken from a company owned unit or pilot franchise operation. It is important these figures are reviewed each year and adjusted as required.
Potential franchisees should be encouraged to speak to current franchisees to find out what their experience has been and if they feel the figures are correct and give an accurate picture of the business itself.
The projection figures should be written by a registered charted accountant who can explain where the figures have come from, franchisee expectation and give a true picture of the financial viability of the business.
Potential franchisees should be encouraged to understand the figures (maybe with the help of an accountant) and supplied with supporting documentation that explain the figures and potential earnings.
Mercury Franchise Consultants work with a chartered accountant who will review your past management accounts, discuss the findings with you and produce a set of realistic projection figures that you can give to your potential franchise teams. A document explaining about these figures will also be provided so your franchisees will have peace of mind that the business they are joining will provide a good return on their investment.
Contact us today for a FREE evaluation of your business and its potential to franchise!