9 Ways a Franchisor will Help, Financially, to Get You in Your own Franchise
TC Franchise Specialists – Franchise and Business Ownership Advising – www.TullConsulting.com
A growing trend is for franchise companies to help in the financing of buying and maintaining a franchise. As the banks are still tight with lending their money, specifically toward new business start-ups, there are more and more franchisors helping new owners cover the initial and on-going costs of a start up business.
Here are 9 ways that Franchisors will work to help you secure funds to make your
new business become a reality.
1) Veteran Discount
Many franchises give start up discounts to military families and veterans. Typically
the veteran is given 10% off of the franchise fee. This can be a $3,000 savings.
A franchisor might choose another option such as giving a discount on royalty fees.
Here are a few franchises that give a Veteran Discount: Asset Exchange Strategies,
Color Glo, Tutor Doctor, All the Perks, Always Best Care Senior Services, and so
many more. http://www.vetfran.com/ As each Franchisor has their own method of helping,
it is best to talk with us for more specifics.
2) Unique Discounts
The Grout Doctor has multiple ways to save.: 20% Veterans Discount, 20% first
in State Discount, 10% initial advertising allowance, $1,000 vehicle wrap allowance.
They are not the only franchise that is working in unique ways to support franchisees.
3) 3rd Party Lenders
Many franchises have a relationship with an existing bank, that will lend money
to new franchisees. The bank has had a long working relationship with the franchisor
and knows that they have a successful model. Thus they are willing to help out new
owners of this proven business system. Lapels Dry Cleaning, Molly Maid, Tropical
Smoothies and many others have a 3rd party provider that you can help you.
4) Franchise Fee
Some consulting or home based business will assist in your franchise fee. Gould
2 Gold may finance up to 80% of your franchise fee.
5) Varied franchise Fee
Some franchises will offer different market sizes. This helps an individual start
with a smaller, lower cost territory to save on start up costs. Vivid Digital Concepts,
The Glass Guru
6) Start-Up Costs
If you can come up with the Franchise Fee, from $10,000 to $30,000, depending on
the franchise, many franchises will help cover a loan for some of the start up costs
for qualified candidates; Color Glo, Asset Exchange Strategies, Aamoco, Sharkies
Cuts for Kids.
7) Operational Costs
Some franchises require a specific funding for a specific period. Liberty Tax will
provide an upfront loan for each of their franchises for the upcoming tax season.
Money Mailers and City Publications will give financial assistance for the first
8) Reduced Royalty
Many franchises will have a graduated royalty fee to allow you to get started in
your business before you have additional costs.
9) Money-backed guarantees
Some franchisors will publicize that after 12 months of following there system,
if you have not reach a certain cash flow, they will return all or part of your
franchise fee: Valley Gold and Budget Blinds. It means that they are sure that their
business system works!
Each Franchisor has their own way to help support a new franchisee. We have only
listed a few examples under each assistance.
To get further details, and to find out other ways franchisors can help you get started, make sure you contact us at TC Franchise Specialists and Tull Consulting