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I provided some guidance to a customer who was trying to decide what type of franchise they wanted. I suggested they look at the franchise earnings book. It is a summary of the franchise earnings claims by several franchisors so you can get a sense of what they are earning a somewhat dated book is available on Amazon
Topic starter
Posted : 19/09/2006 10:17 am
Do all franchises have earnings statements
Do all franchises have earning statements?
Posted : 20/09/2006 9:05 am
Franchise earnings
No only about 15-20% have earnings claims. Many feel there is too much of a liability and too many variables in documenting earnings claims.
Posted : 21/09/2006 10:03 am
Re: Franchise Earnings Claims
It is important to remember that the "sales" claims are not at all indicative of profit. It means nothing to learn that the franchisees in the system average $50,000 in sales per month if they don't disclose their complete financials.
And while the franchisor is required to disclose the franchise's overall financial picture, franchisees need not provide you their details. You can always call individual franchisees to try to get a better idea of their profitability, but they are not obligated to provide any information.
Posted : 11/10/2006 2:03 pm
Re: Franchise Earnings Claims
Thanks Sylvia you have made a good point you could make $50,000 in sales and nothing in profit. I thought the earnings were based on profit numbers!
Posted : 10/11/2006 11:19 am
Re: Franchise Earnings Claims
very nice post
Posted : 21/09/2014 9:25 pm
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