Cut The Red Tape On Your Franchise Loan

Keywords: Business Plans for Franchising

Franchising is a great option for many business owners, especially if they are new to business, or new to that line of business. Typically bank loans for a franchise involve having the bank investigate both the borrower AND the franchisor.

There is whole lot easier way.

Go to the list of franchises that have been pre-approved by the SBA. You will discover literally hundreds of franchises in dozens and dozens of categories. Investigate a few of them and see which ones look most promising to you. The review that the SBA does only reviews for "unacceptable control provisions by the franchisor over its franchisees." It does NOT approve, nor even review, the financial operations or stability of the franchisor.

Once you have your company picked, get your own business plan in place. The lender will need to know everything about the business, including your financial obligations, and how much you are contributing, and how much training you will receive, etc., etc. Even if you are going with a well known brand name, don't assume your lender knows it. He may not.

Your upfront costs may be higher than if you did not have a franchise, but the success rate of franchise operations is higher.