Franchising is a key part of the American economy with over 750,000 franchise establishments in operation, with 8 million employees, and generating over $670 billion in economic output. However, the reasons to own a franchise go way beyond bigness.
Why Buy a Franchise?
Owning one’s own business is a part of the “American Dream.” Yet, starting a business from scratch is very challenging and fraught with risks. Owning a franchise offers the benefits of owning a business that has an established and proven operating system as well as getting a concept with a track record of success. Ultimately, a franchise provides a defined brand with some public awareness. It offers a training program and ongoing operating support from the franchisor, marketing assistance, real estate, and construction assistance, and purchasing power. These all reduce the risks of business ownership. One of the initial challenges is obtaining the funds to buy a franchise.
How to Pay for a Franchise
Here are some ways to pay for a franchise:
Franchisor assistance. A franchisor may offer some type of financial assistance, either from the franchise corporation itself or from its financial partners, so that should be one of your first areas of inquiry as you investigate franchise opportunities.
SBA-backed loans. The Small Business Administration provides loans to many new franchisees through many local banks that it has established partnerships with. An SBA loan typically offers better interest rates and terms compared to conventional term loans.
Banks and Credit Unions. These time-honored institutions are often among the first places that entrepreneurs turn for financing assistance.
Partners or investors. Instead of carrying the financial load alone, aspiring franchise owners can get other partners who can provide funding.
Personal funding. The avenues of personal funding include a personal loan, a 401(k) rollover, and tapping into home equity.
Seek Expert Financing Assistance
Contact Aspen Capital Solutions, based in Atlanta, GA for the financing assistance you need to achieve your franchise ownership dreams. We offer a variety of financial products and financial expertise that you can trust.