There are over 270,000 franchise establishments currently in operation and thousands more are sold every year. Franchising is a huge industry. Yet these businesses, like all others, don’t fund themselves, to begin with. Rather, it takes franchise financing to realize the American dream of owning one’s business. 

What Does it Cost to Buy and Operate a Franchise? 

It will require a significant amount of capital to purchase and then operate most franchised concepts. First is the initial franchise fee, essentially a license to operate in a franchised system. Other costs include things like training expenses, equipment, furniture, operating supplies, personnel, insurance, legal, and accounting costs, property, signage, and more. So, securing adequate franchise financing is one of the major first steps for an aspiring franchise owner. 

Sources of Franchise Financing 

Consider these sources of franchise financing: 

-Franchisor financing assistance. Many franchisors offer some types of financing assistance, so that is the first place to start.  
Banks and credit unions will recognize the value of lending to a qualified individual who is buying into an established business versus starting a business from scratch. 
-The Small Business Administration (SBA) offers to finance specifically for small businesses including SBA 7(a) loans, and these loans come with more favorable terms compared to conventional loans. 
-Using personal funds is a frequently used method of gaining necessary funding. Those funds may come from savings, use of retirement accounts, stock assets, and home equity loans. 
-Borrowing money from friends and neighbors is sometimes used, but that approach comes with some potentially significant relationship challenges. 
-Some lenders specialize in loans for new franchisees. 

How Does One Qualify for Franchise Financing? 

Qualifications for franchise financing include having an acceptable credit history, having a required down payment, having satisfactory financial information and a business plan, and providing information on the intended franchise itself. 

Seek Expert Funding Assistance 

Contact Triport Lending, based in Gulf Breeze, Florida, to get the funding you need from a trusted commercial finance company. We offer a wide range of financial solutions.