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Liquid Assets
Posted by: Consumer ()
Date: April 21, 2008 01:47PM

Ok, so this is a real dumb questions but I dont seem to understand this. Can liquid assets be counted as loans from the bank/credit union or is it only hard cash on hand (savings, money market ect. ect) Say a franchisee requires a $250000 in liquid assets. Do they expect you to have this amount on hand and expect you to finance further amounts or is $250000 can be counted in loans and be considered liquid assets???
Thank You

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Re: Liquid Assets
Posted by: WashingToneLocian ()
Date: April 21, 2008 01:51PM

Consumer Wrote:
-------------------------------------------------------
> Ok, so this is a real dumb questions but I dont
> seem to understand this. Can liquid assets be
> counted as loans from the bank/credit union or is
> it only hard cash on hand (savings, money market
> ect. ect) Say a franchisee requires a $250000 in
> liquid assets. Do they expect you to have this
> amount on hand and expect you to finance further
> amounts or is $250000 can be counted in loans and
> be considered liquid assets???
> Thank You

If you don't know the difference between an asset and a liability, you have no business buying a franchise.

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Re: Liquid Assets
Posted by: TheMeeper ()
Date: April 21, 2008 01:51PM

The cash you receive via the loan is an asset. However, the debt you assume for the loan is a liability.

I don't know who you're dealing with, but it sounds like they are looking for someone with cash and capital, not someone who borrowed the money.

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Re: Liquid Assets
Posted by: WashingToneLocian ()
Date: April 21, 2008 01:59PM

To put it simply, if you are looking at a franchise, they franchiser wants to make sure you have enough liquid capital on hand to pay your bills for the start-up. It is assumed that in addition to the $250K in liquid assets (cash or assets you can turn into cash quickly, like stocks and bonds) you will be borrowing money.

However, if you need to ask, you really shouldn't be doing this.

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Re: Liquid Assets
Posted by: consumer ()
Date: April 21, 2008 02:05PM

mandatory class, wiki definition was kind of vague so I though I would ask.

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Re: Liquid Assets
Posted by: Radiophile ()
Date: April 21, 2008 02:09PM

since they will probably require you to Westrn Union the money to their corporate office in Lagos, then yes the loan would be considered liquid.

Make sure they fax you a copy of their Nigeria business license, just to be on the safe side.

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Re: Liquid Assets
Posted by: Native ()
Date: April 21, 2008 02:13PM

Radiophile Wrote:
-------------------------------------------------------
> since they will probably require you to Westrn
> Union the money to their corporate office in
> Lagos, then yes the loan would be considered
> liquid.
>
> Make sure they fax you a copy of their Nigeria
> business license, just to be on the safe side.


HAHAHAHA absolutely love it, wouldnt that suck. My girlfriends parents own a line of Subway restaurants in Honolulu. I spoke to her dad once he said that
their initial capital for their first restaurant was only 80k and they pulled
about $4500-$5000 in take home profit per month. Not bad for a cheap franchise

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Re: Liquid Assets
Posted by: WashingToneLocian ()
Date: April 21, 2008 02:16PM

Native Wrote:
-------------------------------------------------------

>
> HAHAHAHA absolutely love it, wouldnt that suck. My
> girlfriends parents own a line of Subway
> restaurants in Honolulu. I spoke to her dad once
> he said that
> their initial capital for their first restaurant
> was only 80k and they pulled
> about $4500-$5000 in take home profit per month.
> Not bad for a cheap franchise

Subway became so big so fast because they started out with incredibly low franchise fees. I remember in the early 90s Subway was charging $12K per franchise, compared to $500K or more for McDonald's. I don't imagine you could get a Subway franchise for anywhere near that these days.

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Re: Liquid Assets
Posted by: native ()
Date: April 21, 2008 02:17PM

I see a growing number of ice cream shops in this area. I personally know the lady that owns the Hersheys store in Chantilly. They sell ice cream and cakes. How much money can there possibly be made in this business to cover all the costs and still actually take some cash home

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Re: Liquid Assets
Posted by: native ()
Date: April 21, 2008 02:20PM

WashingToneLocian Wrote:

>
> Subway became so big so fast because they started
> out with incredibly low franchise fees. I remember
> in the early 90s Subway was charging $12K per
> franchise, compared to $500K or more for
> McDonald's. I don't imagine you could get a Subway
> franchise for anywhere near that these days.

Wow, no kidding. I would be on my way out the door right now if that was still the case. Kind of think about most Subway stores are very small, require very little maintenance and very few suicidal employees companing to mcdonalds in overall size and maintenance.

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Re: Liquid Assets
Posted by: TheMeeper ()
Date: April 21, 2008 02:26PM

I notice the same thing with hamburger joints. I see or hear of new ones all the time, and there's already tons of competition around here (5 Guys, Fosters, Cheeburger, Fuddruckers, fast food places, etc.) I often wonder how the heck these places can stay in business, like who the heck is eating all these hamburgers?? I wonder how many burgers you gotta sell per month in order to stay open? Just a disappointing trend that I hope fades away soon... hopefully some will go under and the market will attract something a little different.


native Wrote:
-------------------------------------------------------
> I see a growing number of ice cream shops in this
> area. I personally know the lady that owns the
> Hersheys store in Chantilly. They sell ice cream
> and cakes. How much money can there possibly be
> made in this business to cover all the costs and
> still actually take some cash home

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Re: Liquid Assets
Posted by: WashingToneLocian ()
Date: April 21, 2008 02:26PM

native Wrote:
-------------------------------------------------------

>
> Wow, no kidding. I would be on my way out the door
> right now if that was still the case. Kind of
> think about most Subway stores are very small,
> require very little maintenance and very few
> suicidal employees companing to mcdonalds in
> overall size and maintenance.

Of course, that doesn't take into consideration the operating costs such as leases, food, etc, but still, that's a small price to pay to stick a Subway sign on the outside of your sandwich shop.

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Re: Liquid Assets
Posted by: Mr. Victor Daniels, Accountant, EKOBA ()
Date: April 21, 2008 02:27PM

Radiophile Wrote:
-------------------------------------------------------
> since they will probably require you to Westrn
> Union the money to their corporate office in
> Lagos, then yes the loan would be considered
> liquid.
>
> Make sure they fax you a copy of their Nigeria
> business license, just to be on the safe side.


FROM MR VICTOR DANIELS
ACCOUNTANT, EKOBANK PLC
3,AHMADU BELLO WAY,
VICTORIA ISLAND, LAGOS
NIGERIA

Dear Friend,

Compliments of the seasons!

Permit me to introduce myself, my name is Mr Victor Daniels, I work with Ekobank Plc as an Accountant. In the discharge of my duty, I came across this domiciliary account that has remained dormant for some years now with our bank valued at the sum of Eight Million, Five Hundred Thousand United States Dollars (US$8,500,000.00) I made some enquiries and discovered that the account holder died on the 25th of July 2000 with his wife and their two Children in the Air France concord plane crash bound for New York in their plan for a world cruise. Check the web site below:

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Re: Liquid Assets
Posted by: native ()
Date: April 21, 2008 02:35PM

I get that crap daily too.

It's all about the brand really. WashingToneLocian is right, you are basically paying a certain percentage to put up a sign in your window. I bet if you were to go solo and call ur shop "joe subs" you wouldnt get nearly as much traffic as by carrying the subway name, even if you served exact same crap/

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Re: Liquid Assets
Posted by: native ()
Date: April 21, 2008 02:37PM

lol, maybe we should put our money together and open a fairfax underground sub shop. Put gravis on a diet plan and make him our "jaret"

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Re: Liquid Assets
Posted by: coffin ()
Date: April 21, 2008 09:51PM

I think there's a whole more to a franchise than "putting up a sign". The franchiser will dictate EVERYTHING that goes on in your store...right down to the type of toilet paper in the restrooms.


I have a buddy who owns a Harley dealership and he showed me his franchise agreement with H-D...a HUGE book. It's unbelievable, no detail is too minute to address.

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Re: Liquid Assets
Posted by: Margie ()
Date: April 21, 2008 10:25PM

TheMeeper Wrote:
-------------------------------------------------------
I wonder how many
> burgers you gotta sell per month in order to stay
> open? Just a disappointing trend that I hope
> fades away soon... hopefully some will go under
> and the market will attract something a little
> different.

I vote to replace every burger place with a Waffle House!

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Re: Liquid Assets
Posted by: Radiophile ()
Date: April 22, 2008 09:17AM

I went into a Dominos last year to pick up a to go order and the clerk was telling me they just had their inspection from corporate.. He was joking that all went well and the guy "had to" find something wrong, so he chided them for a small paint bubble on a lamp shade thing over the counter.

While I was waiting for my pizza, we joked about this very subject.. when he gave me my pizza, he asked if I wanted about 10 medium pizzas, all with different combination of toppings that they had to make for the inspectors amusement.

I took the pizzas and passed them around the neighborhood. It was pretty cool.

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Re: Liquid Assets
Posted by: TheMeeper ()
Date: April 22, 2008 09:33AM

Margie Wrote:
>> replace every burger place with a Waffle House!

I wish there was a Waffle House around here. The only one I know of is in Frederick, MD.

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Re: Liquid Assets
Posted by: ITRADE ()
Date: April 22, 2008 09:36AM

coffin Wrote:
-------------------------------------------------------
> I think there's a whole more to a franchise than
> "putting up a sign". The franchiser will dictate
> EVERYTHING that goes on in your store...right down
> to the type of toilet paper in the restrooms.
>
>
> I have a buddy who owns a Harley dealership and he
> showed me his franchise agreement with H-D...a
> HUGE book. It's unbelievable, no detail is too
> minute to address.


Coffin is 100% right on this one. The firm I work for has a franchise practice in it and they're absolute ball busters about standards. The name of the game for franchises is uniformity and if corporte even begins to suspect that a franchisee is cutting standards, the corporate boys are going to bust the franchisee's balls but good.

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Re: Liquid Assets
Posted by: ITRADE ()
Date: April 22, 2008 09:37AM

TheMeeper Wrote:
-------------------------------------------------------
> Margie Wrote:
> >> replace every burger place with a Waffle
> House!
>
> I wish there was a Waffle House around here. The
> only one I know of is in Frederick, MD.

Dumfries is the closest you're going to get to FFX.

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Re: Liquid Assets
Posted by: Otis Campbell ()
Date: April 22, 2008 10:06AM

I would like to direct you to a website that caters to liquid assets.
http://1stinfoproducts.com/jokes/yoga2.jpg

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Re: Liquid Assets
Posted by: formerhick76 ()
Date: April 22, 2008 01:28PM

I'm going to guess that the Koreans are helped by $$$ from the K (informal loans between family/friends) that I learned about in another FFX Underground thread.

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Re: Liquid Assets
Posted by: 496 ()
Date: April 22, 2008 01:45PM

this is a liquid asset
Attachments:
newcastle_brown_ale.jpg

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Re: Liquid Assets
Posted by: WashingToneLocian ()
Date: April 22, 2008 03:38PM

ITRADE Wrote:
-------------------------------------------------------
> coffin Wrote:
> --------------------------------------------------
> -----
> > I think there's a whole more to a franchise
> than
> > "putting up a sign". The franchiser will
> dictate
> > EVERYTHING that goes on in your store...right
> down
> > to the type of toilet paper in the restrooms.
> >
> >
> > I have a buddy who owns a Harley dealership and
> he
> > showed me his franchise agreement with H-D...a
> > HUGE book. It's unbelievable, no detail is too
> > minute to address.
>
>
> Coffin is 100% right on this one. The firm I work
> for has a franchise practice in it and they're
> absolute ball busters about standards. The name
> of the game for franchises is uniformity and if
> corporte even begins to suspect that a franchisee
> is cutting standards, the corporate boys are going
> to bust the franchisee's balls but good.

So what's the deal with all the fucking McDonald's not having their ice cream machines working??? That always pisses me off. It's like clockwork with some of those places.

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