Net Worth

This term
Net worth is the total value of an individual's assets minus liabilities.

Net worth is a measure of an individual’s financial health and represents the total value of their assets (such as property, savings, and investments) minus their liabilities (like loans and debts). In franchising, franchisors typically require candidates to meet a certain net worth threshold in order to qualify for a franchise opportunity. This ensures the prospective franchisee has the financial resources to cover both initial investments and any operational costs during the business’s startup phase.

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