How to finance your franchise

Today the Augusta Free Press ran a story on how to finance your franchise.

You can find the story at this link on the AFP website. I’ve also summarized their take on franchise financing here:

When you need financing, royalty fees, working capital, and inventory, you have options.

First, though, you have to get your records and personal finances in order.

How is your credit score? You also need a business plan.

In many cases, franchisors offer franchise financing. They typically can assist with 15% to 75% of what you need.

Other options include banks, friends, family, investors, and others.

There are many other options and tips to consider when it comes to franchise financing.

U.S. Small Business Administration

One source of help to refer to is the U.S. Small Business AdministrationSince its founding on July 30, 1953, the U.S. Small Business Administration has delivered millions of loans, loan guarantees, contracts, counseling sessions and other forms of assistance to small businesses. An SBA loan may be one option for franchise financing.

SBA provides assistance primarily through its four programmatic functions:

Access to Capital (Business Financing, including franchise financing)
Entrepreneurial Development (Education, Information, Technical Assistance & Training)
Government Contracting (Federal Procurement)
Advocacy (Voice for Small Business)
Wikipedia notes that “The Small Business Administration is a United States government agency that provides support to entrepreneurs and small businesses. The mission of the Small Business Administration is “to maintain and strengthen the nation’s economy by enabling the establishment and viability of small businesses and by assisting in the economic recovery of communities after disasters”. The agency’s activities are summarized as the “3 Cs” of capital, contracts and counseling.”
In this case, “capital” may include options for franchise financing.
Contact your SBA regional office for more information.

Small Business Development Centers

Another valuable source of help is your local Small Business Development Center office.

Check with your local SBDC for free face-to-face business consulting and at-cost training, on topics including business planning, accessing capital (including franchise financing), marketing, regulatory compliance, technology development, international trade and much more.

SBDCs are hosted by leading universities, colleges, state economic development agencies and private sector partners, and funded in part by the United States Congress through a partnership with the U.S. Small Business Administration.

There are nearly 1,000 local centers available to provide no-cost business consulting and low-cost training to new and existing businesses.

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Welcome to All About Franchising!

Welcome to my Blog, All About Franchising!

I’m Kim Marinoff, and my business is A2B Franchise Consulting.

Check back here regularly. I will be creating and posting content about all aspects of the franchise world.

I’ll be introducing and posting links my 11 educational videos on franchising here in the coming weeks, and also embedding them on the Videos page here on my site, and on my YouTube channel.

I’ll also be looking to answer any questions you may have about the world of franchising, how to become a franchisee, what’s the best franchise for you, and more. Please send me your questions, and join the discussion by commenting on any post you may find here that is of interest.

Thank you!

Smiles,

Kim Marinoff

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