Franchise Financing

Financing Your Franchise

Franchise financing is a very specialized area. Approaching your day to day bank for business financing may not always yield satisfactory results.

FRAN5 works with multiple specialist lenders with decades of franchise financing experience including SBA, HELOC, 401K Rollovers and more.

Contact us today to discuss your financing needs.

There are several franchise financing options available when buying your business.

1. Cash

You can purchase your business outright and have no debts.  You will need to look at Item 5 in the FDD to determine what your expenditures will be prior to positive cash flow.

2. Loans

 Banking and lending institutions provide business loans at 3, 5 and ten year periods.  A franchised business with a proven system are typically easier to finance than a private start-up. 

3. Leasing

Franchises often have equipment, vehicles and other assets that can be leased rather than purchased.  There may also be lease to own options available on equipment.

4. RRSP & 401k

You may also be able to use retirement or registered investments to purchase your franchise without paying any taxes or withdrawal penalties.

5. Franchisor

Some Franchisors will offer in house financing, which will be noted on item 10 of the FDD.  Some franchisor will allow installments for master or multiple unit  purchases.

6. SBA

Small Business Administration loans are provided by the Federal Government, however often use personal guarantees or  your personal property as collateral.

7. Loan Brokers

Online & offline you can “shop” your loan through a broker to find alternative funding sources and interest rates to finance your franchise.

Funding Calculator

Franchise funding provided by the Tenet Financial Group
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