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\n Buying a franchise in the UK? Download this free legal guide to make informed decisions and avoid pitfalls.<\/p>\n <\/div>\n \n\nDownload Now<\/a> <\/section>\n <\/div>\n\n\n\n\n If you are considering joining a franchise, you should carefully read the franchise agreement<\/a> and consider its terms. The franchisor will stipulate payment terms and a fee structure in this contract. <\/p>\n\n\n\n Prospective franchisees must also consider how they will cover additional costs in addition to the initial and ongoing fees. Such costs include the working capital to enable them to get their franchise location off the ground and cover any unexpected costs<\/a>.\u00a0<\/p>\n\n\n\n Working capital is cash business owners have available to keep their businesses going. It is the difference between their assets and liabilities. A good amount of working capital indicates that a business can stay afloat for at least a short time. <\/p>\n\n\n\n Your franchise business will not be profitable immediately. For this reason, working capital is a crucial factor in your budget. You will not use it to pay the initial fee. Instead, you will use it to maintain your business, paying expenses and covering costs while it becomes profitable. As a prospective franchisee<\/a>, working capital should be a pot of additional funds that you put aside. <\/p>\n\n\n\n Sufficient working capital can be the difference between having a profitable franchise business in six months and a failed one in a few months. You should reconsider whether the franchise opportunity is feasible if you cannot generate sufficient working capital.<\/p>\n<\/div>\n\n\n\n\n\n Continue reading this article below the form\n <\/i>\n<\/a>\nWhat is Working Capital? <\/h2>\n\n\n\n