Minimum liquid capital refers to the cash or assets that a prospective franchisee must have readily available to invest in a franchise. It typically excludes any non-liquid assets like property or retirement funds. Franchisors set minimum liquid capital requirements to ensure that franchisees can cover the initial costs of opening the business and have enough operating funds to sustain the franchise during its early months. This figure is often listed in the Franchise Disclosure Document (FDD).
Minimum Liquid Capital
This term
Minimum liquid capital is the amount of cash a franchisee needs to have available to start a franchise.
Joe Bailey
Lead Franchise Advisor & Owner
At Franchise Reports, the goal is simple: help you find better franchises.
