Multi-Unit Strategies - Use cost-savings firms to review expenses
Company Added
Company Removed
Apply to Request List

Multi-Unit Strategies - Use cost-savings firms to review expenses

Multi-Unit Strategies - Use cost-savings firms to review expenses

Though the U.S. economy has been under the longest expansion period in history, there will come a point where growth slows, and yes, even a recession will return.

Such an economic downturn will undoubtedly affect the more than 759,000 franchise businesses contributing $451 billion to the U.S. GDP. While many franchise leaders are taking a cautious approach toward the upcoming economic cycle, there are things franchisees can do to better position their business for such a downturn.

Investment banker Carty Davis recently wrote about what franchisees can do now to prepare for a turn in the economy. Here’s what he says about how cost-savings firms can help business owners save money.

 
  • Engage a cost-savings firm. Cost-savings firms review business expenses and contracts to determine where owners can save money. These firms review such costs as electricity, gas, insurance, bank fees, trash disposal, and service fees. By engaging such a firm, QSRs, for example, can typically save between $200 and $400 or more per unit per month. Even small savings can add up considerably over time, which can improve profitability during a downturn. Cost-savings firms generally share in the savings over a set period of time and generally don’t charge up-front fees. While finance executives may be reluctant to admit they missed a cost-savings opportunity, it’s important to remember that it’s difficult to monitor every opportunity. The best CFOs engage third parties to help improve the financial performance of their business.
Published: January 14th, 2020

Share this Feature

The Human Bean
SPONSORED CONTENT
The Human Bean
SPONSORED CONTENT
The Human Bean
SPONSORED CONTENT

Recommended Reading:

Comments:

comments powered by Disqus
Palm Beach Tan
ADVERTISE SPONSORED CONTENT

FRANCHISE TOPICS

American Family Care
ADVERTISE SPONSORED CONTENT
Conferences
Caesar's Palace, Las Vegas
AUG 31-3RD, 2021

An Opportunity Like No Other; where personal fulfillment meets financial success.
Cash Required:
$50,000
Request Info
Huddle House is a full-service concept with Southern charm, offering partners the chance to tap into the fast-growing $285 billion breakfast segment.
Cash Required:
$200,000

Share This Page

Subscribe to Multi-Unit Franchisee Report