Funding a Franchise Purchase.
Funding a Franchise purchase.
A common question I am asked as a franchise consultant is “How much do I need to invest and how do I get funding?”
It’s imperative that you learn how funding works and start the process of securing financing early on.
It’s best to do this during the time that you are researching which franchise will be the best fit.
The financing part should be complete, or near completion before you decide on a business. If not, this could delay your progress by months.
Different franchises have different requirements for their initial investment. Ideally, the franchise
you are considering having a relationship with companies that specialize in financing franchises.
Some possibilities for financing your franchise may include one or any combination of the following:
Home Equity Line of Credit
Conventional Bank Loan
Retirement Account Financing
Contact me to discuss this in more detail and to learn how franchising may be a great fit for your long-term goals. I have relationships with some top funding resources.
Ziggi’s Coffee Zooming to New Markets with Franchise Growth.
Since it began franchising in 2017, Ziggi’s Coffee has been expanding across the country, and recently, it’s been especially concentrated in the Midwest and Great Plains.
Last month Michael Harris and his wife, Tammy, opened their first location in Lincoln, Nebraska. Their decision to franchise with Ziggi’s came after their finished their careers in the military.
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Top Tips to Go from Employee to Boss, from Franchisees Who Did It.
As a former warehouse worker, Matt Black took the leap from employee to the boss when he became a
franchise owner of Benjamin Franklin Plumbing, an Authority Brands company.
“I had to make a decision,” Black says. “Did I want to take my future into my own hands, or did I want to leave it to someone else?”
Ten franchisees with similar experiences to Black weighed in on the crucial steps it took them to make the jump from employee to franchise owner Read more!
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FIVE Common Franchise Terms:
1. Franchisor: A franchisor is a party that grants the right to use its business model, products, and trademark or trade name to franchisees.
2. Franchisee: A person or company that gets the rights from the franchisor to own and operate a business under the franchisor’s trademark or trade name.
3. FDD: The Franchise Disclosure Document, FDD, is a legal document consisting of 23 items about the franchisor and their system that must be provided to franchisees before their purchase.
4. Business format franchise: This format is the most common model and offers more than the product, service, and trademark. It is a complete method to operate a business that includes marketing, training, and operations.
5. Product distribution franchise: A supplier-dealer relationship where the franchisee sells the franchisor’s products. The franchisor does not provide a full system of operating the business.