Three Financial Considerations for Every Franchise Owner
While franchises present some of the most turn-key business opportunities available today, there are still specific requirements that call for additional funding. Every franchise owner needs a sound financial strategy to handle the three big considerations involved in every operation.
From vendor and suppliers to advertising, working capital is the lifeblood of every franchise. Whether you are launching a new franchise, maintaining operations, or looking to expand your empire, access to ample amounts of working capital is the key to success. Some franchise owners seek out working capital through conventional small business loans, while others use specific franchise financing programs. Always talk to your franchise representative to get an idea of the amount of working capital you will need.
Commercial Real Estate for Your Franchise
Select franchise businesses can be run from a home office, but most require a physical establishment for visibility and branding. Your franchise representative will let you know whether you need to lease or purchase commercial real estate for your operation, plus any additional renovations for build-outs. Commercial real estate financing for franchise owners can have very specific requirements, and funding is not usually offered through traditional lending channels.
Every business uses equipment, whether it consists of a laptop and a phone, or proprietary appliances and large point-of-sale systems. Every franchisor details what equipment is necessary to run a successful operation, and a list of equipment vendors is often supplied ahead of time. Franchise guidelines also vary on whether the equipment is purchased or leased. Once the specifics are established, franchise owners will need access to finding to purchase the equipment they need, or leasing agreements that cover specific equipment and vehicles, with the option to upgrade or purchase at a later date.
Running a franchise should be simple and easy, and so should financing your business. At Growth Lending Group, we offer a wide range of funding solutions to franchise owners to cover the costs of real estate, equipment, and even to provide working capital. We also offer a franchise-specific financing program with easy qualifications and fast approvals. Whether you are buying your first franchise or if you are a seasoned pro looking to expand, contact the experts at Growth Lending Group today.