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How to spot an undervalued franchise

It’s not often that buying a franchise is described as getting a bargain.  Typically, buying a franchise costs more at first than setting-up an independent business, but  this is usually offset by improved cash flow, faster achievement of breakeven, more effective marketing, rapid operational deployment and reduced risks to the operator due to the training and support provided by the franchisor.

 

© Jason Gehrke, 2022   Jason Gehrke is the director of the Franchise Advisory Centre and has been involved in franchising for more than 30 years at franchisee, franchisor and advisor level.    He advises both potential and existing franchisors and franchisees, and conducts franchise education programs throughout Australia, and publishes Franchise News, a fortnightly email news bulletin on franchising issues and trends.