4 ways to find funding for a franchise

Owning a franchise is an excellent business opportunity for those who want to get in on a business platform that has been shown to work. However, the big problem with franchising is getting the finance together to make your franchise possible. For any American looking to start up a franchise, there are some practical ways that you could finance your dream.

Here are some of the most effective ways to get together the funds you need to invest in franchising.

Start small and build it up

Not every franchise you enter into has to be your final franchise deal. Many smaller franchises which require only small four-figure sums to get started exist. You could find a cheaper franchise with a bit of research into franchises based on industries you understand.

Then, you build that up, use the revenue generated from that franchise to fund your next deal. This helps you to build up and grow a franchise empire that might only need a year or two of real saving to get started. Not every opportunity needs five or six figures of finance start.

Find franchises offering finance deals

Some franchises are so keen to open up new places they will offer to help you finance anything from 15% to 50%+ of the franchise costs to get started. So if you are looking for an opportunity that only needs you to front up part of the expense, these are the franchises to research and target.

You might even find that many franchises, investors, or lending facilities will offer you better terms if you have a business plan. So, consider writing a professional business plan before trying to gain finance.

Sell an asset

If you own an asset that you know you could sell to fund your franchise, it should be considered. This kind of asset could be anything from property to a vehicle or another past business opportunity. Asset sales can be a great way to build up the finance you need to convince a franchise that you have the means to get involved with their ideas.

Sell your one of your properties

If you own a second property that you use for rentals or a second income, selling it might make a wise choice. For example, some people choose to sell a house in Memphis to a property buyer like Favor Home Solutions. This allows you to get the collateral that you need quickly.

If you worry that a standard home sale might not be quick enough and you could lose out on a good deal on land/construction, consider selling your second home and using the proceeds to invest in your desire for a franchise.

Funding a franchise is not easy, nor will it be something you can do with a click of the fingers. However, sticking to the above ideas should make it easier to fund and build that franchise for the years to come.

Starting small, selling assets, or gaining financial support from a third party are the most effective ways to fund your franchise without taking a needless risk. Consider the above options, then, as they could help you to land your ideal franchise deal.