Franchising: Will You Need Money Down?
Jul 29, 2022 4:29 pm
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.
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®
“Books are the perfect entertainment: no commercials, no batteries, hours of enjoyment for each dollar spent. What I wonder is why everybody doesn't carry a book around for those inevitable dead spots in life.”
― Stephen King