Franchise Store Upgrades

Franchise store upgrades, revamps, face-lifts or whatever the term used, must be taken into consideration when buying a franchise. This is more prevalent in the restaurant, quick service restaurant and retail sectors but always be aware of the clause in you franchise agreement, whichever industry you investigate.

The obvious issue is to understand how often this needs to be done and at what cost, as you, the franchisee, is responsible and the cost needs to be factored into your financial planning. How often this must be done must be specific rather than a vague term like “when necessary” or “at regular intervals”. Then there is the time factor to consider for the improvements, and whether or not you will need to close the store during the remodelling process.

Be sure when buying an existing franchise, if appropriate, when this needs to done and at what cost. The last thing you want, is to buy a franchise and then have to upgrade the store and put yourself in financial difficulty. Don’t assume that if this clause is not in the existing agreement that the seller has, it won’t be in yours. The franchise agreement that you may be required to sign may be different from the sellers.

kev

Kevin Antonie

CEO

SA Franchise Brands

 

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