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Franchisor advice the key to working capital success [poll update]

Sarah Stowe

If the results of our latest poll are anything to go by, when it comes to determining the amount of working capital required to operate a franchise, franchisees are most likely to listen to their franchisor.

Forty-five percent of respondents stated they would opt to follow the franchisor’s recommendation, meanwhile 25 percent believe $50,000 is a suitable amount.

A total of 17.5 percent of people prefer to work from a formula, so a combination of advice from their franchisor as well as their own research is the way to go.

Conversely, 12.5 percent plan to add their working capital to the bank loan they seek to finance the franchise investment, and will subsequently take whatever they can get.

View the results below:

Image: Polldaddy

What are your thoughts on working capital? How do you plan to finance the day-to-day operation of your franchise business?

Let us know by taking part in Franchising’s poll, it can be found to the right of this page.