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How to finance to start up franchise business?

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Joined: Mon, 14 Aug 2006 9:53 am

How to finance to start up franchise business?

Post by ngesther » Mon, 14 Aug 2006 9:57 am

Hi all,

I am looking for financing to start up a franchise business.

Does anyone know where or how to look for financing?


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Strong Eagle
Posts: 11665
Joined: Sat, 10 Jul 2004 12:13 am
Answers: 10
Location: Off The Red Dot

Post by Strong Eagle » Mon, 14 Aug 2006 10:31 am

Most franchise operations will require that you have a certain amount of capital available to buy in. Then, they often have their own financing relationships with banks to assist the franchisee.

Most franchise organizations will not let you buy in on the basis of a loan because you have too little and risk and are too heavily leveraged. Banks will feel the same way, too.

If a franchise wants a $100,000 buy in, you will most likely need the cash for that.

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