|Financially Reviewed by Somer G. Anderson|
|At a glance — As a franchise owner you may have the freedom of owning your own business with the added advantage of being associated with an established entity. Nevertheless, as with creating any new business, establishment costs can be lofty, and you could need extra capital if you stumble upon difficult periods. This page will help you find the right loan for your franchise business.|
Insights Into The World of Loans for Franchises
Start-up costs for owning a franchise can vary from thousands to a few million dollars for some of the more popular franchises. While many franchises will require a franchisee to have a substantial net worth, one can purchase a franchise for $50,000 or less.
The franchisor will charge an initial franchise fee or license fee. Also, there will be a royalty payable based on the franchised outlet's financial performance. Besides this fee and costs, you may be restricted to selling only the stock or goods supplied by the franchisor.
This article explains various business loan types out there for prospective franchisees to consider and adopt.