Understanding Your Options When it Comes to Franchises
Franchising is a huge industry. According to the U.S. Census Bureau, franchised businesses represent about 10.5 percent of all U.S. Businesses that have paid employees. And there are currently more than 792,000 franchised establishments. One of the challenges is choosing a franchise from among 3,800 franchised brands. Another challenge is to get franchise financing.
The Benefits of Buying a Franchise
When you buy a franchise, you get a business that has a proven business model and a well-defined operating system. You get a business with a built-out supply chain. You get a business that has some established brand awareness. You get marketing and advertising support, training support, and operating support. But, like other businesses, franchising costs money, so it pays to choose the right means of obtaining franchise financing.
How to Choose the Right Franchise
When choosing which franchise to buy it pays to examine your personal strengths and interests. You’ll want to evaluate the types of industries that you feel can be the best fit for you. Then consider these factors for each brand that may be of interest:
• Does it operate in and serve a growing market?
• What is the level of competition like? Is there too much or too little competition?
• Does it have a proven sales record?
• Is the business model profitable?
• Are there good opportunities for repeat business?
• What is the brand’s reputation?
Where to Get Franchise Financing
The first place to secure franchise financing can be from the franchisor. They may provide corporate funding assistance from the corporation itself or financing from their business partners. Other sources of franchise financing include franchise financing companies, Small Business Administration loans, bank loans, and alternative financing companies.
How to Qualify for Franchise Financing
You’ll need to have a well-developed business plan, a good credit history and credit score, appropriate business experience, good personal finance conditions, and adequate collateral.
Seek Expert Assistance
To meet your business goals, contact Champagne Global Capital Lending Group, based in Lauderhill, FL. We offer a complete variety of financing solutions for any business.