Identify the perfect franchise for you! Take our short quiz Take our free franchise quiz!
Identify the perfect franchise for you! Take our short quiz Take our free franchise quiz!
Identify the perfect franchise for you! Take our short quiz Take our free franchise quiz!

Franchise Financing - Finding the Money

The cost of buying a franchise can be substantial, but you don't have to be a trust fund baby to get into the franchise of your dreams. Where is the funding going to come from? That's the number one question franchise buyers ask. There are numerous sources of capital, but start with these basic steps first.

  1. Talk to the franchisor. About one in three franchisors provide franchise financing directly or have arrangements with third party lenders. You will find any financing arrangements spelled out in Item 10 of the FDD (Franchise Disclosure Document). Even if the franchisor doesn't have money to offer, it is still the best source of information about your financing options.
  2. Look within. It is a common misconception that you can or should borrow all the money to open a franchise. Be prepared to come up with at least 25 to 30 percent of the total start-up costs. To assess personal resources, start by preparing a personal financial statement (you'll need one to present to lenders anyway).
  3. Ask family and friends. This is one of the most common ways to finance a franchise. After all, who knows your dreams and capabilities better? Plus, they want to help you succeed.
  4. Call your accountant. Ask your accountant to recommend a banker. A good accountant - one with small business experience - is usually a great source of leads.
  5. Find a specialist. You should start at the bank where you do your personal banking, but there's a good chance you won't get what you need there. Local banks are often unable to fund franchise projects. Your chances will be much better with independent lenders like GE Capital Franchise Finance that specialize in franchise lending.
  6. Search the SBA Franchise Registry (www.franchiseregistry.com). The SBA's small business lending guarantee program is a key source of loans. This program for new franchise buyers is much easier to access since the creation of the Franchise Registry, a central database of information about franchisors that have been certified by the SBA.

Why You Should Choose a Franchise with Diverse Revenue Streams

In this article, we’ll explore several examples of franchises in a variety of verticals who execute on this strategy well, including security franchises, pet clinics and day spas.

Territorial Issues and Franchising

Did you know how important picking a good location is when buying a franchise? Read on to find out more!

Franchise Help Sits Down with Cleaning Franchise Oxi Fresh

Whenever we have a tough decision to make, we always look at our value statement and then make our decision. Every member of our team makes a point to follow our code of values in everything they do, whether they are scheduling appointments or in the field cleaning carpets. Our code of values is to be F.R.E.S.H.