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Startup Franchisors Need to Preserve Capital

Posted by Franchise Grade Team June 20, 2016

After having recently attended the 2016 International Franchise Expo, I was struck by the number of startup franchisors exhibiting and extolling the benefits of their franchise opportunity and was impressed with a number of the franchise concepts. If some of these franchisors have the proper leadership and necessary capital (emphasis on capital) I believe they can develop successful franchise programs. A number of these startups are built upon a foundation of multiple corporate locations, which is an important predictor of future franchise success. However, an important requirement for a successful startup franchise system is having enough capital to fund the growth of the franchise.

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