He’s always had the strength, but the third-year quarterback had to find another gear to help push a middling team to the playoffs for the first time in five years.
The post 'That stuff ain't normal': How Justin Herbert is flipping the script on franchise quarterbacking appeared first on Buy It At A Bargain – Deals And Reviews.
Starting a business is a major endeavor. You need to perform market research, file for a license, create a marketing plan, and build your brand. One way to shorten the process is to become a franchise business owner.
As a franchise business owner, you can tap into the resources and branding of a large brand—while still maintaining the autonomy to run your own business.
If you’re considering starting a franchise business, there are a few things you should know. First, let’s talk about what a franchise business is.
In a franchise business, a franchise owner pays a fee to essentially “rent” a brand name. The franchisee runs the business themselves (or hires someone to run it) and must follow the rules and regulations related to how the brand is used.
For example, many McDonald’s restaurants are franchises, meaning an owner (or group of owners, in some cases) pays McDonald’s to use their brand name, menus, logos, and other business assets.
They run their location, pay McDonald’s to use the name, and keep the remaining profits.
A franchise business is a popular business model because it offers owners the best of both worlds: the support of a large brand and the benefits of owning a business.
A few businesses that offer franchising options include:
Starting a franchise business should not be taken lightly. There are pros and cons to consider before deciding whether to become a franchisee.
Starting a business gives you more control over your life and income. Unlike starting your own business, however, there are specific benefits to buying into a franchise.
Starting a franchise business is sort of like playing video games on easy mode. The franchisor offers support in the form of training, materials, process flows, and branding to make it easier to get your business off the ground.
For example, starting a taco shop could require months for menu development, taste testing, logo design, product sourcing, etc. As a Taco Bell franchise owner, however, much of that work is already completed.
Franchise businesses often have a lower failure rate. When you buy into a franchise, you join a proven business model that works. You also have additional support and business resources that can make a difference in your success.
Building a brand is one of the best things you can do for your business. However, it often takes time and resources. When you buy into a franchise, the branding is already complete. People already know who your brand is and what it represents. This saves you time and creates a built-in customer base you can tap into.
In some cases, you may purchase goods at a lower rate. Many franchisors negotiate contracts with vendors for the entire network, allowing you to spend less on goods and services by purchasing in bulk. However, the flip side of these benefits is you may not choose your vendors, and sometimes the costs are higher.
While there are many benefits to starting a franchise business, there are some drawbacks to keep in mind. You’ll pay licensing fees to corporations, which can eat into profits. You’ll also have less control over some aspects of your business. For example, if you own a franchise restaurant, you may have little to say on the menu or which vendors you use.
Now that you understand the pros (and the cons) of starting a franchise business, let’s get down to the details. How do you get started? Here’s what you need to know.
The first step in starting a franchise business is deciding which business you want to join. Hundreds of companies offer franchise opportunities: which one is right for you? Here are a few questions to ask yourself.
Once you answer those questions, start looking for franchise opportunities. For example, if I am interested in a restaurant franchise and like sports bars, I might Google “best sports bar franchises.” As you can see, there’s plenty of options.
Here are a few other searches you can try. Feel free to swap out key terms to find an opportunity that works for you.
Make a list of your top five franchise businesses, then compare what they offer. How much are licensing fees? Is it a flat fee or a portion of your sales? What resources do they offer? Do they offer financing? What happens if you don’t end up keeping the franchise?
Compare all the features and consider all the drawbacks before making a decision.
By now, you should have one or two top franchise choices. It’s time to dig deeper. How many current franchise owners are there? What are their annual revenue and profits?
What competition will you face? Consider both online and in-person competition. For example, suppose you want to franchise a tax company. In that case, you need to consider how you’ll stand out from online companies like TurboTax and in-person accounting firms in your physical location.
Sometimes buying into a franchise provides a false sense of security. You see how much other franchise owners make and think that is the norm. Keep in mind markets can vary by location and the franchisor has a vested interest in highlighting their most successful franchisees.
Whether you are looking to purchase an online or in-person franchise, make sure there is enough room in the market for additional businesses. If the market is saturated, you may struggle to make sales no matter how much people trust the brand.
The cost to start a franchise business can range drastically from a few hundred bucks to set up a website to millions to pay franchise fees and build a store. Usually, franchisors will list the average cost on their website.
However, sometimes there are hidden fees you’ll need to keep in mind:
You’ve researched all your options and have decided on a business to join. Congrats! Now it’s time to create a business plan. This is one of the most crucial steps, so take the time to create a solid business plan that covers all the bases.
According to the Small Business Association, a business plan should include:
The next step is to create your business entity. The type of business you create might depend on the franchisor you work with. Some might require an LLC or corporation. An LLC protects your personal assets from liability, while a corporation is a tax structure.
You might also choose sole proprietorship; however, that can leave your home and other assets at risk. This guide will walk you through the different options, but I suggest meeting with a tax or legal professional to decide if the structure is right for you.
Keep in mind city and state laws may impact which structure is right for you.
The final step is to find a location for your franchise business. If you are online, the location will likely be a website, but you might elect to have office space as well. If your franchise business has a physical location, make sure to compare sites to find an affordable one that gets plenty of foot traffic.
Don’t just consider the location’s current pros and cons. Research future developments as well. An ideal location today might not be if a bypass is installed right next to you directing traffic away.
On the other hand, a location that is just OK today might gain attention if a large shopping center is built next door. (Just remember that sometimes development plans fall through, so don’t choose a terrible location based on possible plans.)
The cost to start a franchise business varies by business. Some only cost a few hundred dollars, while starting a McDonald’s franchise costs between $1 and $2 million.
It varies by business. The average is usually between $50,000 and $70,000 per year.
Not entirely, no. The franchisor generally requires an initial payment before you can open your business. If you don’t have capital, consider bringing in an investment partner.
1) Identify a business you want to work with. 2) Research current owners and the competition. 3) Determine market interest. 4) Research startup costs 5) Create a business plan. 6) Form an LLC or corporation. 7) Choose a location. 8) Create a marketing plan.
According to Entrepreneur, the most profitable franchises are Taco Bell, Dunkin’, and The UPS Store.
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Starting a franchise business is not without risks. However, the added support and access to a built-in customer base make it a tempting model for many business owners.
If you are comfortable working with a team and appreciate the support and other benefits of being a franchise owner, it can be an ideal way to build your own business.
Remember online marketing is crucial to the success of any business in 2021. Understand the benefits of SEO and social media. Study up on practices like paid advertising that can help you reach a wider customer base.
Finally, don’t be afraid to hire a professional to handle your marketing. They can put their expertise to work while you focus on building your franchise business.
Are you considering starting a franchise? What challenges are you facing?
The post How to Start a Franchise Business appeared first on #1 SEO FOR SMALL BUSINESSES.
The post How to Start a Franchise Business appeared first on Buy It At A Bargain – Deals And Reviews.
Starting a business is a major endeavor. You need to perform market research, file for a license, create a marketing plan, and build your brand. One way to shorten the process is to become a franchise business owner.
As a franchise business owner, you can tap into the resources and branding of a large brand—while still maintaining the autonomy to run your own business.
If you’re considering starting a franchise business, there are a few things you should know. First, let’s talk about what a franchise business is.
In a franchise business, a franchise owner pays a fee to essentially “rent” a brand name. The franchisee runs the business themselves (or hires someone to run it) and must follow the rules and regulations related to how the brand is used.
For example, many McDonald’s restaurants are franchises, meaning an owner (or group of owners, in some cases) pays McDonald’s to use their brand name, menus, logos, and other business assets.
They run their location, pay McDonald’s to use the name, and keep the remaining profits.
A franchise business is a popular business model because it offers owners the best of both worlds: the support of a large brand and the benefits of owning a business.
A few businesses that offer franchising options include:
Starting a franchise business should not be taken lightly. There are pros and cons to consider before deciding whether to become a franchisee.
Starting a business gives you more control over your life and income. Unlike starting your own business, however, there are specific benefits to buying into a franchise.
Starting a franchise business is sort of like playing video games on easy mode. The franchisor offers support in the form of training, materials, process flows, and branding to make it easier to get your business off the ground.
For example, starting a taco shop could require months for menu development, taste testing, logo design, product sourcing, etc. As a Taco Bell franchise owner, however, much of that work is already completed.
Franchise businesses often have a lower failure rate. When you buy into a franchise, you join a proven business model that works. You also have additional support and business resources that can make a difference in your success.
Building a brand is one of the best things you can do for your business. However, it often takes time and resources. When you buy into a franchise, the branding is already complete. People already know who your brand is and what it represents. This saves you time and creates a built-in customer base you can tap into.
In some cases, you may purchase goods at a lower rate. Many franchisors negotiate contracts with vendors for the entire network, allowing you to spend less on goods and services by purchasing in bulk. However, the flip side of these benefits is you may not choose your vendors, and sometimes the costs are higher.
While there are many benefits to starting a franchise business, there are some drawbacks to keep in mind. You’ll pay licensing fees to corporations, which can eat into profits. You’ll also have less control over some aspects of your business. For example, if you own a franchise restaurant, you may have little to say on the menu or which vendors you use.
Now that you understand the pros (and the cons) of starting a franchise business, let’s get down to the details. How do you get started? Here’s what you need to know.
The first step in starting a franchise business is deciding which business you want to join. Hundreds of companies offer franchise opportunities: which one is right for you? Here are a few questions to ask yourself.
Once you answer those questions, start looking for franchise opportunities. For example, if I am interested in a restaurant franchise and like sports bars, I might Google “best sports bar franchises.” As you can see, there’s plenty of options.
Here are a few other searches you can try. Feel free to swap out key terms to find an opportunity that works for you.
Make a list of your top five franchise businesses, then compare what they offer. How much are licensing fees? Is it a flat fee or a portion of your sales? What resources do they offer? Do they offer financing? What happens if you don’t end up keeping the franchise?
Compare all the features and consider all the drawbacks before making a decision.
By now, you should have one or two top franchise choices. It’s time to dig deeper. How many current franchise owners are there? What are their annual revenue and profits?
What competition will you face? Consider both online and in-person competition. For example, suppose you want to franchise a tax company. In that case, you need to consider how you’ll stand out from online companies like TurboTax and in-person accounting firms in your physical location.
Sometimes buying into a franchise provides a false sense of security. You see how much other franchise owners make and think that is the norm. Keep in mind markets can vary by location and the franchisor has a vested interest in highlighting their most successful franchisees.
Whether you are looking to purchase an online or in-person franchise, make sure there is enough room in the market for additional businesses. If the market is saturated, you may struggle to make sales no matter how much people trust the brand.
The cost to start a franchise business can range drastically from a few hundred bucks to set up a website to millions to pay franchise fees and build a store. Usually, franchisors will list the average cost on their website.
However, sometimes there are hidden fees you’ll need to keep in mind:
You’ve researched all your options and have decided on a business to join. Congrats! Now it’s time to create a business plan. This is one of the most crucial steps, so take the time to create a solid business plan that covers all the bases.
According to the Small Business Association, a business plan should include:
The next step is to create your business entity. The type of business you create might depend on the franchisor you work with. Some might require an LLC or corporation. An LLC protects your personal assets from liability, while a corporation is a tax structure.
You might also choose sole proprietorship; however, that can leave your home and other assets at risk. This guide will walk you through the different options, but I suggest meeting with a tax or legal professional to decide if the structure is right for you.
Keep in mind city and state laws may impact which structure is right for you.
The final step is to find a location for your franchise business. If you are online, the location will likely be a website, but you might elect to have office space as well. If your franchise business has a physical location, make sure to compare sites to find an affordable one that gets plenty of foot traffic.
Don’t just consider the location’s current pros and cons. Research future developments as well. An ideal location today might not be if a bypass is installed right next to you directing traffic away.
On the other hand, a location that is just OK today might gain attention if a large shopping center is built next door. (Just remember that sometimes development plans fall through, so don’t choose a terrible location based on possible plans.)
The cost to start a franchise business varies by business. Some only cost a few hundred dollars, while starting a McDonald’s franchise costs between $1 and $2 million.
It varies by business. The average is usually between $50,000 and $70,000 per year.
Not entirely, no. The franchisor generally requires an initial payment before you can open your business. If you don’t have capital, consider bringing in an investment partner.
1) Identify a business you want to work with. 2) Research current owners and the competition. 3) Determine market interest. 4) Research startup costs 5) Create a business plan. 6) Form an LLC or corporation. 7) Choose a location. 8) Create a marketing plan.
According to Entrepreneur, the most profitable franchises are Taco Bell, Dunkin’, and The UPS Store.
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Starting a franchise business is not without risks. However, the added support and access to a built-in customer base make it a tempting model for many business owners.
If you are comfortable working with a team and appreciate the support and other benefits of being a franchise owner, it can be an ideal way to build your own business.
Remember online marketing is crucial to the success of any business in 2021. Understand the benefits of SEO and social media. Study up on practices like paid advertising that can help you reach a wider customer base.
Finally, don’t be afraid to hire a professional to handle your marketing. They can put their expertise to work while you focus on building your franchise business.
Are you considering starting a franchise? What challenges are you facing?
If you’re a new entrepreneur looking for profitable business ideas with minimal risks, a franchise business can be a great place to start.
A franchise business carries the success, credibility, and popular associations of established brands, reducing the need for extensive marketing and brand building for you as a franchise owner. This can save you much time and money as you focus on making your business more profitable.
A franchise business model can also help you scale rapidly because you inherit the operation processes and framework from the licensing company.
Think about it this way: What would be easier?
Starting a company from scratch, working on branding, operations, funding, and marketing—or buying a license for a pre-established company?
In most cases, it’s the latter. That’s why entrepreneurs are so eager to buy into franchise businesses.
A franchise business is a licensing model of business where a successful company allows you to run a version of its business using its logo, processes, and in-house resources.
Think of the many fast-food stores you see worldwide.
These “franchise” businesses exist in multiple locations, selling the same products under the same branding, which helps build loyal customers and instant brand recognition. Some examples of worldwide franchises include McDonald’s, Domino’s Pizza, and Subway.
Home service franchises offer services related to moving and housing. These work best for regional companies as most people prefer using local home repair and renovation services to save time and money.
As more and more houses are built every year, the demand for painters keeps growing. You can cash in on this growth by launching a painting franchise business.
Companies like CertaPro Painters let you start your own business under their name, so you can begin offering painting services using the CertaPro branding.
No matter where you live, there is always a need for repairing services.
If you’re looking for a steady business with minimal market shocks, start a repair service franchise. This model is fairly stable because houses need recurring repairs—meaning you have the opportunity to develop long-term customers.
Some popular options include Paul Davis Restoration, Mr. Handyman, and 911 Restoration.
Another popular home service franchise business opportunity lies in the moving industry. Beyond moving series, these franchises offer temporary storage and junk removal services. You can find franchise business opportunities with companies like UNITS Moving & Portable Storage.
Although, it’s important to keep in mind that managing a moving business can be incredibly tricky because there’s a greater degree of responsibility involved.
As the average citizen moves towards continuously busier lifestyles, the need for house cleaning services has grown significantly over the past few years. You can benefit from this booming trend by launching a housecleaning franchise business with companies like Chem-Dry and Merry Maids.
When people think about shopping, retail is one of the first industries that come to mind.
Retail franchise businesses come in many shapes and sizes. This way you can focus on an industry that truly matches your interests and skillset.
The fitness industry, and especially sportswear, is thriving.
It’s one of the few sectors that saw huge growth throughout the pandemic, with people paying more attention to their health than ever before. From training shoes to yoga accessories, people have an ongoing need for fitness products.
Starting a fitness franchise business with companies like Anytime Fitness and Planet Fitness can help you target these customers and scale your business.
Real estate is a tricky but lucrative market for aspiring entrepreneurs. It has a steep learning curve but can help you build a profitable business with a generous cash flow—if done right.
Companies like HomeVestors of America are a great place to start a real estate franchise business.
Car wash franchises with strong branding can benefit from repeat-purchase loyalty, helping you attract new customers and build long-term relationships—keeping your business profitable.
Some great car wash franchise options include Prime Car Wash, Tommy’s Express, and Mr. Clean.
If you have a passion for sports, consider investing in a sporting business. Companies like Soccer Shots offer great franchise opportunities with a mission-driven business model.
You can also focus on companies selling sporting goods, offering training spaces, sports club memberships, and other sport-adjacent activities.
Similar to the growing popularity of housing services, furniture stores are seeing a surge in demand. From selling individual furniture pieces to offering rental packages, franchises in the furniture industry offer a wide range of scaling opportunities.
You can work with franchises like Bloomin’ Minds and Slumberland Furniture.
People love food, especially fast food. So if you’re looking for a hot-selling, customer-favorite franchise business, start a food franchise. These are super popular, tend to do well economically, and carry great brand recognition across a wide geographic region.
Popular food items like pizza have the potential to sell well, offering you a chance to build a profitable franchise business. This is one of those categories where there’s tight competition, but great growth potential.
You have many options to choose from including Domino’s Pizza, Pizza Hut, and Papa John’s.
Coffee is another hot-selling item, literally.
If you’re a fan of the beverage and have a desire to manage a consistent business, starting a coffee franchise can be a great option for you. Consider working with companies like Dunkin’, Aroma Joe’s Coffee, and Scooter’s Coffee.
If you’re looking to target the frozen foods market, consider starting an ice cream franchise business. Brands like Baskin-Robbins have a huge customer base that you can leverage with a franchise business model.
You can also consider companies like Kona Ice which are smaller than the top industry names but offer great variety and opportunities for reaching new customers.
When we talk about franchise businesses, we often picture McDonald’s, which is still popular decades after its launch. If you’re looking for that kind of growth, consistency, and brand power, choose a burger franchise.
You can also choose other companies like Wendy’s, Burger King or Carl’s Jr.
Starting a noodle franchise business can offer a great breakfast and snacking option for local residents. You, as a business owner, can build relationships, expand locations, and still remain consistent in your offerings.
You can work with companies like Nothing But Noodles and Noodles & Company to launch noodle franchise businesses.
If none of the options so far appeal to you and you want to take a more personalized approach, consider launching a professional services franchise business. These offer the greatest potential for customization, adaption, and variation compared to other franchise business models.
With a professional service franchise business, you have a multitude of customer retention opportunities that can be quite profitable in the long run.
Nearly every company and residential community needs a shipping and mailing service today. This rising demand offers promising potential for franchise owners.
Established brands like The UPS Store can help you find your customers faster and retain them for decades to come.
Such franchise business models also offer a huge expansion potential as shipping and mailing companies continue to expand the geographical areas they serve.
Just like shipping and mailing companies are a cornerstone of work-life across several industries, printing businesses are also a key component of modern living.
The best part of starting a printing franchise business is that it’s easier to set up and manage. It’s relatively low-maintenance, carries low risk, and has much potential to grow, making it an ideal option for new entrepreneurs.
Look for companies like Minuteman Press for launching a successful printing franchise.
Another popular corporate franchise option is a staffing franchise business. Companies like Spherion and Express Employment Professionals help other companies fill their staff positions by connecting them to people looking for jobs.
These franchise business models can help you build positive relationships with major companies in your industry while making a decent profit.
Along with staffing agencies, companies also need training providers to help upskill their staff. Whether it’s quarterly seminars or yearly upskilling boot camps, working with companies like Sandler Training and Dale Carnegie can help you establish an impactful thought leadership and corporate training franchise business model.
From rebranding to interior decor, design teams are a key player in most major industries.
If you’re passionate about art, decoration and understand the fundamentals of marketing design, you can work with companies like Closets by Design and Decorating Den Interiors to launch a design franchise business.
Here are some common questions new entrepreneurs ask when they’re planning to launch a franchise business.
When you buy a franchise business, you’re only buying the license to use the company’s resources and not the rights to own or manage the company itself. This means, you can own and control the franchise but the original company still remains an independent entity.
The payment structure for each franchise business depends on the agreement you have with the owning company. For instance, a company may choose to accept royalties for every purchase in addition to a licensing fee. Companies can also work with a fixed-fee payment structure for each franchise location.
While both the franchise fee and royalty fee are necessary to own a franchise, the two are not the same. The franchise fee is the cost of buying a license to use the owning company’s branding and resources. A royalty fee, on the other hand, is a revenue-based fee you pay based on your sales and profits.
An easy way to remember this is to keep in mind that franchise fees are one-time payments for buying the trading license, while royalties are ongoing payments based on your revenue.
If you’re not happy with your franchise business, you always have the option to sell it. Franchise exits are pretty common, especially in larger cities where multiple businesses are vying for consumer attention.
However, it’s important to check your agreement before making any selling decisions. Your owning company may not allow you the rights to sell their franchise outside of their organization.
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Starting a franchise business has many benefits to offer entrepreneurs at all levels. New business owners may find it easier to run a pre-established business than starting a new brand from scratch.
Mid-level entrepreneurs can also use a franchise to pivot their career, especially if it’s an industry change.
Finally, senior entrepreneurs can hugely benefit from the brand recognition the owning company has built.
Most franchise brands have thousands of loyal customers who become a source of recurring revenue for the business. If you’re able to leverage this reach for further growth, it can be easier to scale your franchise business rapidly.
Which franchise business idea best suits your needs? Which idea would you like to try first?
If you’ve got a franchise, then you probably need franchise financing.
Franchises are businesses that trade their name and operating methods to people in exchange for a royalty fee. They offer both the flexibility and independence of being a small business owner, plus the support and infrastructure of a large corporation. They can be the ideal opportunity for anyone interested in becoming an entrepreneur. But they do require a significant capital investment.
You may be tempted to pour your own money into your franchised location. Or you may want to use your own credit cards or take out a second mortgage on your house. You shouldn’t have to do any of these to finance a franchise.
If you need funding to purchase a franchise, your first conversation should be with your prospective franchisor. Many corporations with franchise business models offer tailored financing solutions exclusively designed for their franchisees. These can be either through partnerships with specific lenders or by providing capital directly from the corporation. This is one of the most common ways to finance a franchise and offers many benefits. For example, Gold’s Gym, UPS Store and Meineke all offer financing options to their franchise owners.
One benefit of using franchisor financing is that it can be a one-stop shop for everything you need. Many of these programs don’t just offer financing for the franchise fees. They can also offer financing to purchase equipment and other resources you need to start up the business. If you’re working with a franchisor who offers their own financing program, chances are you won’t need to look much further for funding.
Each franchisor financing agreement will differ. But some offer to take on as much as 75% of the debt burden from the new franchise owner. Agreements might involve deferred payments while the business is starting up. Or they may structure repayment on a sliding scale. Have your independent business attorney or accountant review the terms of your franchise agreement and the financing agreement. Have them help you understand the full terms before you sign. See entrepreneur.com/article/312476.
These are another option for franchise financing. Many business owners consider approaching their bank for funding. But a traditional term loan doesn’t have to come from a bank. Such loans can come from a credit union or an alternative lender. With these loans, the lender offers a lump sum of cash up front, which you then repay, plus interest, in monthly installments over a set period of time.
These kinds of loans are more likely to be available to business owners with good credit. Lenders will be looking at your financial history, as in how well you pay your bills. A better financial history means interest rates and terms will be better, and it can be the difference between being approved or not.
Demolish your funding problems with 27 killer ways to get cash for your business.
The Small Business Administration guarantees a portion of the loans made in its name. This gives lenders an incentive to offer more loans, and at better rates and terms. But keep in mind that qualification standards are strict. New business owners in particular are not likely to qualify.
Often, alternative lenders have less stringent requirements and shorter turnaround times than traditional financing options. They offer a variety of loan options like equipment financing, business lines of credit and term loans.
But this access and convenience may cost you. Alternative loan products tend to be more expensive, offer shorter repayment terms and lower loan amounts, than their more traditional counterparts.
But it may be worth it if you need to supplement your existing financing or you can’t qualify for a bank or SBA loan or need cash quickly to jump on a life-changing opportunity. So don’t dismiss alternative lending out of hand. Here are some alternative lenders to consider.
This lender works exclusively with franchise businesses to help them find the solution that’s right for their needs. Get financing for new units, refinancing, recapitalization, remodels, and acquisitions, etc. You can also access equipment financing loans. Apple Pie works with a variety of different lenders, hence the interest rates and terms you receive on your franchise loan will vary, but it will be largely based on the type of product and your qualifications.
Apple Pie Capital is specifically dedicated to franchise financing. Get 5-10 year payment terms. They have flexible collateral options. There are no prepayment penalty options. See applepiecapital.com/franchise-financing.
This lender works with businesses in a variety of industries, including franchise businesses. With CAN Capital, you can access short-term loans and medium-term loans. Terms for the short-term loans range from 3 to 24 months, and 2 to 4 years for the medium-term loans. CAN Capital charges interest as a factor rate.
To qualify for a franchise loan from CAN Capital, you’ll need at least $4,500 revenue per month, a minimum credit score of 600, and 12 months preferred (although they will consider 3+ months with consistent revenue) in business, for their short-term loan.
Qualifying for a medium-term loan is stricter. For a CAN Capital medium-term loan, you’ll need a 680 personal credit score, 7 years in business, and a preferred $350,000 in annual revenue. See cancapital.com/business-loans.
Demolish your funding problems with 27 killer ways to get cash for your business.
This is one of the easiest and quickest ways to get a short-term loan up to $250,000 or a line of credit up to $100,000. Though OnDeck isn’t specifically geared toward franchise owners, it’s a viable online loan option for any type of small business owner who doesn’t qualify for a bank loan or doesn’t want to wait months to receive loan funds. See ondeck.com.
This lender has numerous franchise partners across the US, including Papa John’s, Pinkberry, Quiznos, etc. Funding Circle offers various loan products through partnered lenders for franchises in different stages of growth. For Funding Circle’s standard term loans and lines of credit, you’ll need to be a franchisee with a business that’s at least two years old and have a credit score of at least 660.
But they also offer merchant cash advances, short-term working capital loans, and invoice financing. These choices have higher rates, but more lenient requirements. For example, for an MCA, you’ll only need six months in business, and a credit score of 500.
Get online SBA loans up to $5 million for commercial real estate purchases, loans up to $350,000 for debt refinancing and business capital, and bank term loans up to $500,000. This lender is only an option for established franchises. You’ll need at least two years in business, positive cash flow, and good personal credit. See smartbizloans.com.
If you have a decent social media presence and a fairly large number of friends or followers, crowdfunding may be feasible. Acquaintances aren’t likely to send you thousands of dollars. But a few bucks here and there can add up. Crowdfunding is also a way to get funding without having to give up a portion of control and ownership.
Demolish your funding problems with 27 killer ways to get cash for your business.
The main difference between the two is angel is investing is actually a sale of some of your ownership and control, whereas loans from friends and family are much like more formal loans from a provider. Your family and friends are under no obligation to charge the kind of interest rates prescribed by the Federal Reserve, so they could potentially charge more. On the other hand, they aren’t obligated to charge interest at all.
Your family and friends are under no obligation to put anything in writing, but you should do so anyway, for the sake of your sanity if nothing else. Having your family and friends loan you money or buy a part of your business will change the dynamic. Can your relationship stand the strain?
Franchises, just like every other form of business, can build and improve their business credit. As long as they are an LLC or corporation it is fine. Note: you need each company you want to build business credit on to have its own EIN number.
But keep in mind, many franchises may require purchases directly from headquarters or suppliers specifically designated by them. This can be anything from uniforms to beef, to architectural plans for erecting a new building or renovating an existing one. It will always pay to check.
Franchises need funding, like every type of business. Check with the franchise itself to see if they have funding. Check the SBA and your bank, and alternative lenders. Consider crowdfunding, angel investing, or loans from your friends and family if other sources are not forthcoming. And be sure to build business credit for your franchise!
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