Is a Franchise Loan Right for You? 

Is a Franchise Loan Right for You? 

Thousands of Americans each year enter the exciting world of business ownership through franchising. Yet, selecting a franchise can be difficult because there are over 3,000 franchise brands to choose from. Another difficult task is finding the right franchise loan to acquire and operate a franchise. 

What Does it Cost to Buy a Franchise? 

The cost to buy a franchise varies greatly by the industry and type of franchise. But the major common factor is the franchise fee which essentially is the license to operate and use the beneficial aspects of a franchised brand. Costs also include such things as legal fees, real estate and build-out costs, equipment, initial inventory, supplies, training, and employee costs. When seeking funding it is important to calculate all the expected costs, including initial operating costs, before seeking a franchise loan. 

What are the Available Franchise Loan Options? 

Franchise loan options include: 

Financing assistance from the franchisor. Many franchisors offer some type of financing assistance, either through financing entities that partner with the franchisor or from the corporation itself. 

Commercial banks or credit unions that provide traditional term loans. 

The Small Business Administration. The Small Business Administration (SBA) backs loans that are provided through its partnering institutions, usually at rates and terms that are more favorable compared to bank loans. 
Loans from friends and family. This avenue is used frequently but it comes with some relationship risks. 

Alternative lending options. Alternative lenders are offering online lending solutions to franchise funding needs. Financing specialists. Many professional lenders can provide funding to fulfill franchise ownership dreams. 

What Does it Take to Get a Franchise Loan? 

Approval for a franchise loan generally requires a thorough business plan, a good credit score, and a solid personal business history. 

Seek Expert Financing Assistance 

Contact Gipson Commercial Solutions for the expert financing assistance you need to buy your franchise. We provide a wide range of tailored financial solutions to help you achieve your dreams.