How much capital do you need for a franchise business?
Ron Jordan, CEO of Jordan Hospitality Group, discusses capital for franchises in today’s “Accounting and Bookkeeping” segment.
For anyone starting a new business, personal savings and net worth are always going to be challenges. However, some of the most successful McDonald’s owners started out as cooks or dishwashers, who learned how to build equity in themselves over time.
Building equity throughout your life will help mitigate risks when attempting to enter the world of franchises. Jordan also recommends creating an effective business plan and finding the right group to achieve franchise success.
Every brand has a different initial investment, but Jordan says you or your group usually want to have at least a $1 million net worth. He recommends looking closely at the franchise disclosure documents and understanding what the investment looks like, then adding a bit more for room for error.
To connect with Ron Jordan and learn more information on franchises, click here.
This information is presented by Ron Jordan.