As a franchisee, you will be issued invoices for stock for franchise fees of 5% of turnover from Kiwikrane Franchising Ltd. If you are an approved credit customer, then the terms are the 20th of the month following.

If you are having trouble making payments, contact Thomas, and we will discuss a solution. When you're having financial problems, the best solution is to talk to your creditors, not bury your head in the sand.

We have seen many times in the past the following occur: Something goes wrong in a person’s life—they lose a job or have an unexpected expense or some sort of crisis. They then start to overdraw on the cash boxes—instead of allocating money to the stock suppliers, the franchise fees, lenders, the tax office for Tax returns, and other important suppliers, you keep the money first. This means they can’t pay bills on time and get into a cycle of not being able to buy stock properly as they have exceeded their credit limit. Takings go down, and the situation gets worse.

The advice from us is that you must pay everyone else first; then what’s left is yours. Inexperienced business owners often come to grief by overdrawing. At any point in time, we have 2 or 3 franchisees with this issue. Don’t let this be you.

Read the cashflow section.