My husband and I would like to start a franchise someday. I have excellent
credit and we are homeowners, but aside from savings and retirement, we don't
have much liquid capital or assets. I was wondering if franchisors ever
consider bank loans as liquid capital, or how to get approved as a franchisee
without much of it.
Finding individuals to partner with on buying, expanding and successfully
operating a franchise with is also another good option that should be
considered.
I'm a former franchise owner (franchisee) so I can speak from experience. After dealing with many franchisors it seems that they are not necessarily strict about the liquid assets requirements or even net worth. They want to make a sale.
Your issue is not so much with the franchisor, but with the bank loan officers and SBA reps. They are the ones with the strict criteria and requirements. The fact that you own a house (collateral) and have excellent credit are very strong points. But they will require a downpayment for the loan (usually 20-30% of the loan amount).
The first thing for you to do is write up a business plan so you know exactly how much that 20% comes to. You need to know exactly how much your start ups costs will be so you know the loan amount you will need.
FindFranchisePartners | Window Shopper | 5/2/2013 - 12:42 pm
operating a franchise with is also another good option that should be
considered.
bizplanhelper | Window Shopper | 6/26/2012 - 4:27 pm
kburger | Community Moderator | 6/26/2012 - 9:18 am
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