Who can we sell such a franchise to?

[MasudIbne756]

At the end of 2021, we should have said to ourselves: “Let’s stop franchising, we need to validate our business model” .
How can we present ourselves to an investor who is not an expert in the business model and has never read a balance sheet?


Maybe someone attracted by marketing and influencer marketing, but not by a solid business model.

For example, the Healthy Color Trento affiliates come to mind
. They would need help because they invested in loan data a project that did not work, suffering a significant loss.
A loss that was predictable by examining the balance sheets.

In 2021, it went a little better: they made around €940,000 in revenue, but lost more than €550,000.
Yet, if we maintain the 2020 trend, we should have lost two million.

The point is that you can't start a franchise with a loss-making business model.
You have to validate the business and have solid numbers first.