For an entrepreneur who aspires to operate his/her own business, business franchising is a popular way to go. There are over 750,000 franchised establishments in the United States today, notably led by McDonald’s, 7-Eleven, KFC, and Burger King. There is a wide array of franchise possibilities among the approximately 3,000 existing franchised brands.
Why is Business Franchising Appealing?
Business franchising offers less risk compared to creating a business from scratch. Buying a franchise offers the benefits of an established and proven business model, an existing brand identity, franchisor-provided operating and training support, the buying power of the franchisor, and marketing assistance.
How to Buy a Franchise
First, a decision to buy a franchise should begin with some careful soul-searching. Business franchising, like any other new business undertaking, takes a lot of time, effort, and money. So, be sure you want to tackle the challenges to reap the potential rewards.
Second, research the types of franchises that you may want to own, including specific franchised brands. You’ll likely want to find one that you’ll feel comfortable owning; one that aligns with your skills, interests, and values. Look for brands that have a record of sales success, brands in growing market areas, and brands that exercise social responsibility. Speak with existing franchise owners about their experiences, successes, and challenges.
Third, review the required franchise fees and operating costs.
Fourth, begin the application process.
Fifth, set up a “discovery day” meeting.
Sixth, carefully examine the requirements and costs of that franchise.
Seventh, get the financing that you need to sign a franchise agreement.
Where to Get Funding to Buy a Franchise
Funding for business franchising can come from many possible sources including the franchisor itself, commercial bank loans, SBA loans, alternative lenders, franchise financing specialists, self-funding using an IRA or home equity loan, franchising partnerships, and friends and family financing.
Seek Expert Financial Assistance
To achieve your business dreams, contact Hornet Capital Solutions. We offer a complete variety of financing solutions for any business.