The franchise startup costs template is used to estimate the business start up costs and funding required to get your franchise business off the ground.
In addition, the franchise startup costs template will produce an opening balance sheet based on the information entered for use in the Financial Projections Template.
Startup Costs Calculator for a Franchise
Start up costs are the costs which you incur before your business starts. They can be separated into expenses, such as franchise fees, and legal costs which are charged to the profit and loss account, and assets, such as improvements to leasehold property, which are capitalized and form part of the opening balance sheet assets of the business.
Using the Franchise Startup Costs Template
The total start up costs, expenses and assets, must be matched by startup funding, in the form of supplier credit (accounts payable), debt such as bank loans, and business startup capital from investors and from the owner of the business.
To use the franchise startup costs template, details of expenses and assets needed to get the franchise business off the ground are entered on the left hand side. This will include additional cash needed to fund the new operation in the first few months until it starts to produce revenue.
The next step is to enter details of how these costs are going to be funded on the right hand side. The template will automatically check to see whether the total startup funding matches the total costs and highlight an error if this is not the case.
Based on the information supplied, the franchise startup costs template will calculate the opening balance sheet, which can be used as the starting point for the financial projections template, as part of a business plan for starting a franchise business.
The franchise star-tup costs template is available for download in Excel format by following the link below.
Users use the free franchise start-up costs business plan template to generate start up costs projections at their own risk. We make no warranty or representation as to its accuracy and we are covered by the terms of our legal disclaimer, which you are deemed to have read. This is an example of a new business startup costs calculator that you might use when considering how to start a franchise business. It is purely illustrative. This is not intended to reflect general standards or targets for any particular company or sector. If you do spot a mistake in the franchise business startup calculator, please let us know and we will try to fix it.
About the Author
Chartered accountant Michael Brown is the founder and CEO of Plan Projections. He has worked as an accountant and consultant for more than 25 years and has built financial models for all types of industries. He has been the CFO or controller of both small and medium sized companies and has run small businesses of his own. He has been a manager and an auditor with Deloitte, a big 4 accountancy firm, and holds a degree from Loughborough University.