Liquid capital, also called cash on hand, is the amount of readily available money a franchise candidate must have to qualify for a franchise opportunity. It excludes assets like real estate or retirement accounts that cannot be easily converted to cash. Franchisors set liquid capital requirements to ensure that franchisees can cover startup expenses and manage operations while the business ramps up. Liquid capital is often evaluated alongside net worth during the qualification process.
Liquid Capital
This term
Liquid capital refers to the amount of cash a franchisee must have available to invest immediately.
Joe Bailey
Lead Franchise Advisor & Owner
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