[newfranchise]

I think some people tend to overshoot their expectations about their franchise's profitability. However, while a brand may be popular with their target market, daily operations do affect its profitability. I guess the age-old business acumen of not drawing your sustenance income (or the income you use to sustain yourself and your family) from your business (particularly one you're just starting) will hold true. Franchises, most especially, would require a separate fund where you can draw overhead from-- franchising and licensing fees, design of the location, equipment, and personnel training.

[investor]

The bit about not drawing from the franchise's income (at least during its starting years) is good advice because some people tend to overdraw from their incomes and touch operating expenditures required in the company when they hit rough patches at home. This causes them to cut corners on their product, and usually, this hurts the quality rather horribly.

[jezzicaz789]

Originally Posted by newfranchise

I think some people tend to overshoot their expectations about their franchise's profitability. However, while a brand may be popular with their target market, daily operations do affect its profitability. I guess the age-old business acumen of not drawing your sustenance income (or the income you use to sustain yourself and your family) from your business (particularly one you're just starting) will hold true. Franchises, most especially, would require a separate fund where you can draw overhead from-- franchising and licensing fees, design of the location, equipment, and personnel training.

Thanks you for the post.
Hi guys, Im a newbie. Nice to join this forum.