of operations for Paul Davis (the parent
company of low-cost franchise Paul Davis
Emergency Services, which specializes in
emergencymitigation and reconstruction).
Along with financing the start-up of their
new franchise business, franchisees must
ensure they have enough liquid capital to
run the business until it starts generating
positive cash flow. Franchisors told us this is
sometimes a challenge in the low-cost space
because franchisees have just enough cash
to fund the initial start-up but not enough
cash to cover expenses early on.
WIN Home Inspection works with a
banking partner to offer franchisees
operating capital beyond what is needed at
start-up. This helps new franchisees cover
their vehicle, tools, and marketing costs in
the first year, President Steve Wadlington
said.
August-September 2014 | BusinessWorld | 101
