Franchise Glossary
Ramp-Up Period
What is Ramp-Up Period in franchising?
The initial phase after your franchise opens during which you are building toward full operational capacity and stable revenue. During ramp-up, expect lower-than-average sales, higher-than-normal operating costs, and a steep learning curve for you and your staff. Most franchisors estimate a ramp-up of 3 to 6 months, though some concepts take longer. Your working capital reserve must be large enough to cover this period, because running out of cash during ramp-up is one of the leading causes of early franchise failure.