Franchise Glossary
Liquid Capital
What is Liquid Capital in franchising?
Cash or near-cash assets that can be accessed immediately without selling long-term investments or taking on debt, including checking and savings accounts, money market funds, and short-term CDs. When a franchisor states a minimum liquid capital requirement, they are asking how much you can put to work today without liquidating retirement accounts or real estate. Most brands require $50,000–$150,000 in liquid capital depending on the model. This is distinct from net worth, which includes illiquid assets.