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    5 Replies Latest reply on Jan 17, 2012 9:22 PM by CorpCons08

    Loan to start franchise

    thesneak44 Newbie

      I am wanting to open a franchise with a very successful and fast growing restaurant. They like me and my application but I need $70k minimum to start. I have $20,000. How can I get the extra $50,000 to get started with my franchise? I would like to note that I currently do not have a job, and this is why I am deciding to use my savings to hopefully start my franchise.

        • Re: Loan to start franchise
          chris1985 Tracker

          I may be able to help, if you want you can click on my profile and see my work contact info in my bio. If you could email me some more information, I would be happy to see if it's something we can help you with. You might want to explore a SBA loan, we are a SBA preferred National lender.

          • Re: Loan to start franchise
            CorpCons08 Ranger

            thesneak44,

             

            There are a lot of lending resources for purchasing into franchises. The SBA would be a good resource for getting started or pointed in the right direction. Let us know if we can assist you any further.

             

            Regards,

             

            Dan

            • Re: Loan to start franchise
              sgregory Wayfarer

              An option that may help with financing your business is a microloan.  Typically they are funded through SBA, EDA, USDA, not-for-profits, etc and provided to local economic development agencies, towns, chambers, etc. to create jobs.  You can contact your local economic development people who will know about these programs and find the best one for your.  There is also a website www.businessloanfunds.com that provides listings by county.

               

              Good luck!

              • Re: Loan to start franchise
                myDealCompass Scout

                Financing can come from a lot of different sources with various pros and cons. The SBA advice above is a great start and probably the best route to go.  I will throw out another option - getting a business partner or outside investor who will cover costs in exchange for part ownership of the business. You may be able to find someone who is willing to cover the $50k that is required. The reason that I suggest a business partner is that I have personally seen a lot of benefits from doing so.  In addition to money, you could leverage the, hopefully, complementary skills and passions of a second person who might have experience in franchising. It is also a way to spread the risk.  Of course you forfeit some of the upside by sharing equity.  I look forward to hearing more about the route you decide to take!

                 

                -Douglas

                  • Re: Loan to start franchise
                    CorpCons08 Ranger

                    Douglas,

                     

                    That is always an option, and an excellent one if planned correctly. Of course, to plan correctly you want to make sure you have a contract in place, with escape clauses, buyout options, etc. Partners can be a great thing, but if things go bad, you need to plan how out how you will succeed the partner.

                     

                    Regards,

                     

                    Dan