Many first-time business owners like to choose a franchise business over starting a brand new one because there is already recognition for the brand. There is a ton of small business funding available, but there are also several hoops that a potential franchise owner has to jump through. The primary franchise company may have many strict guidelines to follow, and it’s important to take these into account when seeking funding.
The Franchise Process
Unlike a brand new business, a franchise already exists in various places. Some franchises may not have a presence near your area, while others like McDonalds could have multiple locations in the same city.
To begin the process of purchasing a franchise, contact the primary franchise owners, and find out what it takes to open a franchise in your area. Keep in mind that a franchise doesn’t have to give you the right to open one. You have to convince them that you deserve it and then agree to follow all of their rules.
When it comes to creating a franchise, getting the money to build and operate it can be a daunting task, but luckily there are many options available to get a business acquisition loan.
- Franchise Loan – Some franchises will offer funding in the way of loans, discounts off franchise fees, etc., but this isn’t guaranteed.
- Commercial Loans – Banks and other lending institutions offer loans to franchises. They take into account the businesses’ brand recognition and overall profitability when considering you for a loan.
- SBA Loans – The Small Business Administration (SBA) has several loans available for equipment, real estate, and more. These loans are offered through various lenders and are backed by the SBA.
Watch the Fine Print
Franchise fees can be expensive, so make sure you factor them in when getting a loan. You may also have to provide financial reports, agree to take part in promotions, and complete other actions before the franchise will allow you to build. You’ll have to sign a franchise agreement, so make sure you know every line of it before agreeing.
Join the franchise world today. Call us at 888-788-6456 or fill out our online form to start the funding process.