Step Four: Franchisee Validation
Things to Remember When You are on the Validation Call
- 1. What one or more franchisees have accomplished is not your biggest concern; concentrate on your personal objectives and how they can be met as a Menchie’s franchisee.
- 2. Keep in mind that each franchisee organizes their business differently. There are no hard and fast rules. Some franchisees manage their own stores, others pay managers. Some take cash out of their business to improve their quality of life and others leave their cash in the business to re-invest in other stores. Your goal isn’t to determine what other franchisees do, but to see how your financial objectives can be met as a Menchie’s franchisee.
- 3. There are three major expense line items in any food-related business that represent the bulk of your expenses:
- Food Cost – the cost of the product you sell as a percentage of sales
- Labor Cost – the cost of you labor force as a percentage of sales
- Occupancy Costs – the total rent, which is a fixed dollar amount