Franchise Opportunities Blog
How to Pre-Qualify for Franchise Funding
Just as most people pre-qualify for a mortgage when they are looking for a house, you can also pre-qualify for business funding before you buy a franchise.
On average, most franchises cost between $50,000 and $200,000 to get started. On the lower end are mobile concepts and home-based businesses that can cost a lot less, and on the high end are hotels and restaurants that can go well into the millions. Since the cost of a franchise brand can vary so greatly, some individuals interested in purchasing a franchise may not be able to afford certain franchise brands. The hard part is knowing which one or ones you can afford. That’s where pre-qualification can help.
The benefits of pre-qualification include:
- Knowing in advance how much you qualify for so you have a better idea of which brands you should consider.
- Speeding up the purchase process so you don’t have to worry about funding delays.
A good place to start is an automated funding tool that provides your ‘fundability’ or funding potential instantaneously. To be clear, this is NOT an actual loan commitment. It is more of an early determination of the amount and funding options you could qualify for. (The one here is free and requires no obligation on your part.)
The road to franchise ownership can be blocked by many unexpected problems, one of which can be lack of funding. Going through the pre-qualification process helps you move closer to identifying the right franchise for you and securing the funds to make your dream a reality.