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Buying Franchises: A Primer for Searchers

Acquiring Minds

CHAPTER

The Importance of Financials in Franchise Development

There's some pretty good financial information available in FDD is generally right. Most franchises are charging a percentage based royalty, meaning if you make a million, the standard is 6% for a lot of brands. So based off that, every franchise that's doing that should be able to know what their average revenue per franchisee is. There's no reason not to, they mathematically can do it.

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