Show Me the Money: Funding Your Franchise

Becoming part of a franchise can definitely be worth the investment because it has already established brand reputation if it is already in place.  However, it takes a lot of money to invest in a franchise.  Regardless of whether the franchise is a retail store, restaurant or some other business, you always has to spend money to make money.  

There are several methods to fund your franchise and while some traditional funding sources are stretched too thin, sometimes you have to get creative about how to fund your franchise.  Think outside the norm to find funding for your business. Some of the more unique methods of obtaining funding for a franchise are to use third-party lenders, investors, direct financing, dipping into savings and even looking at less expensive franchises.  

Third-party lenders can be a source of funding where people do not usually look.  There may be programs available to help you fund your franchise. Using investors can help because either businesses or individuals are looking for ways to increase their own profits so if you ask them, they may in fact be ready to show you the money but it is also a case of, “You show me yours, I'll show you mine.” Check with your franchise company to see if it has any direct financing options.  If the franchise is secure enough, it may be able to directly loan you the money while you run the location. Many people looking to invest in franchises often dip into their retirement accounts.    

While the market has been traditionally low the last couple of years, investors may see more return of their investment rather than letting it sit in a money market or stock market account.  Also, when looking at less expensive franchises, there are websites online that can help you find the right business opportunity in your area.  You can then use a lower investment to create a franchise opportunity.