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How to make a franchise investment a success

by Joe Rosengarten on 28 Feb 2018

As well as providing investors with numerous financial and tax benefits, franchise investments also provide a key advantage that everyone yearns for: control over one’s own success and control over one’s own schedule. 

“Being in charge of your own destiny is one of the major lifestyle benefits of a franchise investment,” says Steve Drexler, President, ‎St. Louis Franchise. “You have personal time and freedom, and can make time for family; to pick up and drop your children off at school. Those are some of the big reasons why people go into franchising.”

The potential to generate income and take the reins of a franchise with a track record of success is another key differentiator. Lifestyle is important, but the money has to be right, too. “Investors get to take advantage of a proven concept where they create their own compensation,” Drexler says. “There are also better tax advantages than just being someone who generates a T4 income every year. And, you get to develop your own culture. You are the boss.”

The St. Louis Bar and Grill franchise has become a leading brand name in Canada since its inception in 2002, and offers attractive franchise opportunities for Canadians. Below is a breakdown of the numbers of a franchise investment with the company:

  • Franchise fee: $40,000
  • Royalty contribution is 6% of weekly gross sales
  • Advertising fund contribution is 1.75% of weekly gross sales
  • 2016 sales average per unit was $1.7 Million
  • The minimum unencumbered cash investment required is $500,000-$600,000
  • The total turn-key investment for a new St. Louis Bar and Grill is $850,000-$950,000

“The investor is responsible for making the original equity infusion into the company and we then train them, or if they want to be a silent investor, we train their management team on how to run the restaurant from A to Z,” Drexler says.

“We provide a fully comprehensive 5-6 week training program, which covers all facets of ownership and operation, as well as 2-3 weeks of operational support post-opening. We hold their hand and teach them every position including, most importantly, the financial management tools that are necessary for success in this business.”

Download this whitepaper to find out more about how Canadians are benefitting from franchise investments. 

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