Can you afford a franchise?
You may know that the cost of franchises varies widely starting as low as a few thousand dollars to as much as over a million dollars. But did you know there are many options for financing the right franchise for you? Of course you can use your savings, severance package, or take out a loan. Also most franchises offer some sort of financing. The amount and what they finance is different from concept to concept. It is a good question to ask when you are evaluating each opportunity.
The U.S. Small Business Administration offers financial assistance programs for a variety of needs. There is a registry of franchise companies that partner with the SBA that has a streamlined process accepting SBA loans.
Another trend in financing the purchase of a franchise is Entrepreneur Rollover Stock Ownership Plan. It is designed to let you which is when you rollover a 401k, or IRA retirement savings to fund the purchase of a business. These programs allow you to use your retirement funds to invest in your future without penalties.
The point is there are thousands of franchise concepts out there – in all kinds of industries – offering all kinds of involvement (owner/operator, absentee investor, work from home and more). It may be intimidating when you start to think of the money it will take to get started but keep in mind you have many options for investment level and financing options so get started on your search for the ideal business today!
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