Thousands of individuals enter the exciting world of franchising each year to achieve the dream of owning their own business. Franchising offers the benefits of an established business model, an existing brand name, franchisor support, training, and buying power.

There are two key challenges in franchising. One is to pick the right franchise among the approximately 3,000 franchised brands. Next, is to obtain the necessary franchise funding to pay for the usually significant costs involved in becoming a franchise owner. 

Why Franchises Fail 

An owner doesn’t hire the right people or has poor people management skills.

The owner doesn’t follow the rules and operating system established by the franchisor.

The franchisor makes mistakes including granting a franchise in a poor market area.

The franchise isn’t a good fit for the owner

The owner is undercapitalized and has poor franchise funding.

Where to Get Franchise Funding 

Sources of franchise funding include: 

The franchisor

Some franchised businesses offer funding assistance from the franchise corporation itself or through lenders that have partnered with the franchise. 

A traditional term loan

Conventional loans offered by banks and credit unions are among the frequently used means of securing franchise funding. 

SBA loans

The SBA is well-acquainted with franchising. Through its partner banks backs many franchise loans, typically at better rates and terms than conventional loans.

Partners or investors

Funding from either can provide the needed capital.

Franchise financing companies

Some financing organizations specialize in assisting franchise owners in realizing their dreams. 

Personal financing. Funds can come from a 401(k) rollover, or Home Equity Line of Credit (HELOC). 

Seek Expert Financing Assistance 

Contact Green Apple Funding to get the franchise funding assistance you need to achieve your dreams of franchise business ownership.