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The Franchise Investment: Terms You Need to Know

  • February 17, 2018
Franchise Investment Great American Cookies

Are you excited about making a franchise investment in Great American Cookies and opening up your own bakery? Becoming a Great American Cookies franchisee is a great way to capitalize on the exciting quick service retail (QSR) industry trends while having fun with a well-established company. It’s important to research such an investment carefully, but that can be difficult when industry jargon is confusing to newcomers. Here we’ve broken down a few key terms you’ll likely encounter as you read about becoming a franchisee.

Franchise Disclosure Document (FDD)

The FDD is an important document because it breaks down exactly how the company you’re thinking of joining has performed historically. The document will give you specific information on company history, store count, and information on profits and/or losses. The FDD also outlines exactly what franchisee and franchisor should expect from one another. Information on fees and royalties will be outlined, which are important for prospective franchisees to understand. Furthermore, the franchisor will outline exactly what franchisees can expect to receive in exchange for these fees and royalties. At Great American  Cookies, we’re proud to offer world-class training and support as a part of our franchisee’s franchise investment.

Franchise Investment Great American Cookies

Liquid Assets

Franchisors like Great American Cookies will often ask to see proof of liquid assets, or money you have access to. Franchisees who have a larger amount of liquid assets than the total initial investment may have an easier time of covering unexpected expenses that may arise in their business or personal life while they are still getting their business up and running.

Total Initial Franchise Investment

The total initial investment refers to the estimated costs associated with getting your business up and running. This estimate usually includes just about everything that the franchisor anticipates you’ll need to get started, including the costs associated with your lease agreement, inventory, travel costs (to attend your training), and more. Review the total initial investment carefully with your franchisor and ask any questions you have any the items that are included. These costs are just estimates and every store is different.

These are just a few commonly used terms related to making a franchise investment. At Great American Cookies, we want the franchising process to be simple and transparent to our franchisees. If you have any questions about these or other terms you’ve encountered, don’t hesitate to reach out! Our experts will be able to clarify things for you and get you started on the path towards opening your own Great American Cookies franchise.