When investing in a franchise opportunity, securing financing can be a challenging undertaking. Securing adequate financing is often one of the biggest struggles to overcome. If you’re a first-time business owner, the process can seem complicated and daunting. Having the guidance of an experienced broker to guide you through the application process will help you start your new business off on the right track and give you peace of mind.

If you would like to discuss franchise financing options with a qualified broker, the team at POM (Peace of Mind) Capital & Funding Services knows the strict regulations and requirements to help you smoothly secure funding for your business endeavor.

What Is a Franchise?

Starting a franchise is a big financial investment, though it does have many perks. When you purchase the franchising rights from a parent company, you are partnering with an already established brand with name recognition. It is essentially your business as each location is privately owned. You’re buying name recognition and basic business model when purchasing the franchising rights. While you are the owner, you must adhere to their standards for location, design, and product selections. Some parent companies are involved every step of the way to secure franchise financing.

Purchasing a Franchise

Buying into a franchise requires significant upfront investments as you are responsible for acquiring the startup capital. The franchise fee alone can range from $20,000-to-$50,000 and many parent companies require recurring charges for marketing and royalties. Franchise financing will help you cover expenses related to starting a new business, such as:

  • Real estate space
  • Equipment/Inventory
  • Insurance
  • Employee training
  • Business licensing/legal fees
  • Marketing expenses
  • Franchise fee

Franchise financing is often tailored to fit your unique circumstances, so knowing all your options is a must for all franchisees. Having a knowledgeable broker help navigate the complex process of franchise financing will make the process easier for you both short term and in the long run.

Franchise Financing

Many franchise brands are on an SBA approved lending registry and will provide you with a list of lenders other franchisees have successfully used in the past. Familiarity with the business model of a franchise along with well-established profit margins help lenders trust that your future franchise will pose little financial risk on their end.

We Can Help

At the POM Capital & Funding Services, we can schedule a consultation to learn more about your options and what to expect when acquiring franchise financing. Coming prepared with the right financial documents and project expectations will help your broker become familiar with your circumstances to get you the best loan possible.

If you would like to discuss your franchise financing options with an experienced broker, call POM Capital & Funding Services at 631-354-9290 or write to us at [email protected] to schedule a free consultation with our team.

POM Capital & Funding Services is a leading provider of alternative funding solutions for businesses of all types and sizes, offering commercial finance solutions and products to businesses in the Centerport, New York area and throughout the state of New York.