Franchising: Will You Need Money Down?

Jul 29, 2022 4:29 pm

Hi there!

There is no such thing as a "No Money Down Franchise." Why?

Because lenders need you to have skin in the game. As in "money."

Think about it.

If you were the banker, would you lend a new small business owner all of the money they'll need to open for business?

Of course not. But you may lend a portion of what they need.

So you'll need money down. But how much?

Speaking of franchise business loans, I'm an affiliate for Guidant. That means I may receive payment from them if you use their services, which include providing all types of franchise loans. Here

Figure you’ll need to come up with around 30% of the total franchise business investment.

For example, if the total investment of a certain franchise is $225,000, which will probably include the upfront franchise fee, equipment, build-out, inventory, and some working capital, you’ll need to write a check for around $68,000 (30%).

The question is...are you willing and able to do that?

But you won't know exactly what you can budget for up until you know what your net worth is.

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Franchise Buying Tip:

It's smart to get advice on franchising from different sources. However...

If the advice given is primarily to help the advice-giver, it could end up costing you lots of money and lots of headaches.

The Franchise King®

Joel Libava


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