Franchise Business Finances

After your business plan is ready, it”s time to become a detective. Time to get a list together of a trusted attorney, accountant, and perhaps a close, business-savvy friend who will give you honest information. DO NOT try to absorb all of this on your own!

Use your advisors to carefully discuss the:

  • Start up costs of the franchise

  • License fees for the franchise

  • Leases and Rent

  • Construction and improvements

  • Fitness Equipment

  • Office Equipment for operating the franchise business.

  • Training and Travel costs

  • Franchise operation manuals

  • Franchise on-line resources, such as a support forum

  • How the fitness franchise handles support/help inquiries.

(The franchise comparison grid compares some of these, but you”ll need much more detail than this simple grid provides.)

Evaluate CONTINUING COSTS related to the franchisor such as:

  • Insurance

  • Interest on loans

  • Coop Advertising Fees (Curves franchise and others have this)

  • Training and travel expenses

  • Royalties

  • Do you have to buy supplies from the franchisor?
    In cases where the franchise uses its volume purchasing power, this is a good thing, but if they use it as a way to make money, you can often buy supplies elsewhere. Find out what the rules are and ask specific examples.

  • What are your rights when it comes to renewing your franchise license?
    If your franchise is especially lucrative, for example, does the franchisor have the right to cancel your agreement and sell the franchise to an investor?

  • What are your rights when it comes to selling the franchise later if your life changes?
    What are the restrictions? Can you reveal financial information to the buyer?

Further investigate these companies including their financial statements, and the financial and training assistance they offer. Look carefully at the success and track record of the franchisors, their financial condition, and how much initial capital is required.

  • What is the long-term capital commitment, including facility and equipment lease obligations?
  • What are you contractually obligated to do?
  • Is it better to reduce your own personal liabilities as much as possible, perhaps by forming an S corporation?

The disclosure document (UFOC) should be obtained and read in detail. Research items such as renewal rights, franchisor control and quality control of the operation and enforcement policy.

When you begin to look for financing, keep in mind that any outside funding source is going to want proof that you have carefully planned your business. You can get a lot of guidance from your franchisor on this, but you need to do your research in addition.

Have an accurate idea of what your own assets are — this could be real estate, retirement and savings accounts, vehicles, and other investments. If you have a large amount of assets, financing will be easier.


You may also take on investors who buy shares in your business. This is called "equity financing" as opposed to "debt financing" or borrowing money. This means that you may lose control of the business. Any agreements should be in writing.

Notice: Curves and Contours Express offer expedited loan application processes via the Small Business Association. This can help you take advantage of opportunities.

Get free women”s fitness franchise information

There is absolutely no commitment or risk. Request this new information package about opening your own profitable fitness center today!

PRIVACY: Your information WILL NOT BE SHARED nor used for "SPAM"

<!– function FrontPage_Form1_Validator(theForm) { if (theForm.daytime_phone.value == "") { alert("Please enter a value for the \"Daytime Telephone Number\" field."); theForm.daytime_phone.focus(); return (false); } if (theForm.daytime_phone.value.length < 5) { alert("Please enter at least 5 characters in the \"Daytime Telephone Number\" field."); theForm.daytime_phone.focus(); return (false); } return (true); } //–> //document.contactform.ref_loc.value = getCookie("fitnessfranchise_referrer");

FREE Information Request
State/Province *choose one* Alabama Alaska Arkansas Arizona California Colorado Connecticut District of Columbia Delaware Florida Georgia Hawaii Iowa Idaho Illinois Indiana Kansas Kentucky Louisiana Massachusetts Maryland Maine Michigan Minnesota Missouri Mississippi Montana North Carolina North Dakota Nebraska New Hampshire New Jersey New Mexico Nevada New York Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Virginia Vermont Washington Wisconsin West Virginia Wyoming All of Mexico All of Canada All other locations
ZIP/Postal Code
Country USA Canada Mexico Other Country
Daytime Phone required
Email Address
Geographic Preference for your franchise

Your name and information is kept confidential. No SPAM will be sent to you because you”ve requested this form!

var where=Get_Cookie(”LFFID”); document.request.entry.value=where;

Thank you to today”s sponsor for the information package.

Information package courtesy of Contours Express.

No votes yet.
Please wait...

Be the first to comment on "Franchise Business Finances"

Leave a comment

Your email address will not be published.