Figuring this out can be one of the hardest parts of buying a franchise.
The good news is you don’t need an MBA or crazy spreadsheets to figure it out
Tomorrow, I’m hosting a live free workshop breaking down my exact strategy for building a franchise pro forma.
I host these weekly calls as part of my ongoing free education program for people looking to buy a franchise.
If you’re already working with my team you can find the link Skool.
If not, and you want to join us, click here to sign up.
What we will cover:
Follow a simple approach that breaks it down into three parts:
Part 1: Sales
How much revenue can this business generate in the first year?
Estimate high, medium & low
Part 2: Variable Costs
These costs are directly tied to sales. The higher the sales, the higher these costs go
Cost of goods sold, commissions, royalties, credit card fees, fuel, etc.
Part 3: Fixed Costs
These costs are incurred no matter the sales volume
Rent, insurance, guaranteed payroll, software, vehicle payments, and marketing minimums
Similar to sales, estimate a high, medium, & low
Putting it All Together
There is an art & science to collecting information from the franchisor, other franchisees, competitors, industry reports, local market research, and gut feelings.
We’ll talk about all that.
If you want to join:
- Already working with my team: find the link Skool calendar
- Not working with my team: click here to sign up.
Hope to see you there tomorrow!
Cheers
Brian
