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by a searcher
1mo ago
from Carnegie Mellon University
in Phoenix, AZ, USA
For this conversation, it's pretty much like any other expense. I'm assuming your looking at cash flow, so factor it into your 5 year cash flow model - after all, that is more-or-less how you are probably judging the business, how much cash you take home. But in this case I'd probably look at it on a monthly basis (at least for the first 2 or 3 years) as best I could just so I understood the potential impact and if creates any problems for me.
reply
by a searcher
2d ago
from University of Pennsylvania
in Palo Alto, CA, USA
I like to budget some refresh $ for resales, especially turnarounds. However, if the franchisor is making you commit to significant refresh $ above-and-beyond what is standard, I would be very wary of that.