When considering finance options for a franchise opportunity, the best strategy is to take a personal inventory of your resources first, before deciding on one path or another.  There are many creative options and strategies to utilize.   

While a franchisor may have the legal right to default a franchisee, there are many issues that a franchisor should consider prior to determining whether to send out a default letter.

Taking into account the franchise fee, royalty fees, working capital and other possible costs needed to start a franchise business, most potential franchisees find they don’t have the cash resources to purchase a franchise upfront.

Done consistently and correctly, royalty audits can benefit franchisors and franchisees alike by encouraging honest reporting.  

When you buy a franchise, you often can sell goods and services that have instant name recognition, and get training and support that can help you succeed. But purchasing a franchise is like every other investment: there’s no guarantee of success. The Federal Trade Commission, the nation’s consumer protection agency, has prepared this information to explain how to shop for a franchise opportunity, the obligations of a franchise owner, and questions to ask before you invest.  

“I can’t guarantee what you will make, but I can tell you what the average franchisee is making.”