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Working Capital Requirements

Posted by Franchise Grade Team June 10, 2015

A critical but often misunderstood category in the Franchise Disclosure Document is Additional Funds or working capital which is the last category in Item 7 – Estimated Initial Investment. Most franchisors provide an Additional Funds or working capital amount of three months. These funds are estimated to cover expenses to operate the franchise during the initial period of operations.

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Understanding Working Capital Financing Options For Franchises

Posted by Franchise Grade Team May 9, 2014

One of the oldest adages regarding starting and running a franchise is the answer to a common question; "What are the three most important aspects of a successful business?" and that answer is - "location, location, location."

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