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Nothing But Net . . .

Franchise - Net Worth

When searching for franchise opportunities, the term ‘net worth’ will come up.

 

Franchisors look for potential franchisees with a certain net worth depending on the common investment level of their business.

 

Why Franchisors Ask About Net Worth?

 

Your net worth indicates how smart you are with your money. Franchisors want franchisee’s who will manage their business finances smartly, enabling them to grow their business over time.

 

How much Net Worth Do You Need?

 

This will depend on the franchisor, as well as the total investment required to start a franchise. Realize that net worth isn’t the only factor franchisors look at when assessing you as a potential franchisee. They will also look at business skills and maybe industry experience. How much money you can put down (liquid capital) and the total amount of your collateral assets will also factor into your qualification factors.

 

How to Determine Net Worth?

 

Start with your assets. This could be cash or other liquid assets, personal property, your home, investments, and retirement savings. Then list your liabilities, like credit card debt, auto and other loans, your mortgage, and any other debts you have. Subtract the liabilities from your assets. The number you get is your ‘net worth’.

 

Fran

The Franchise Frog

Leap Forward

 

 

 

 

When searching for franchise opportunities, the term ‘net worth’ will come up.

Franchisors look for potential franchisees with a certain net worth depending on the common investment level of their business.

Why Franchisors Ask About Net Worth?

Your net worth indicates how smart you are with your money. Franchisors want franchisee’s who will manage their business finances smartly, enabling them to grow their business over time.

How much Net Worth Do You Need?

This will depend on the franchisor, as well as the total investment required to start a franchise. Realize that net worth isn’t the only factor franchisors look at when assessing you as a potential franchisee. They will also look at business skills and maybe industry experience. How much money you can put down (liquid capital) and the total amount of your collateral assets will also factor into your qualification factors.

How to Determine Net Worth?

Start with your assets. This could be cash or other liquid assets, personal property, your home, investments, and retirement savings. Then list your liabilities, like credit card debt, auto and other loans, your mortgage, and any other debts you have. Subtract the liabilities from your assets. The number you get is your ‘net worth’.

Fran

The Frog