Some aspiring entrepreneurs or franchisees may not have the funds necessary to start, despite their desire.
As a potential franchisee, in addition to the financial limitations, you will also have to pay for the franchise fee, initial investment, and ongoing royalties.
Where can you find these opportunities, where the initial costs can be reduced or even limited? And where can you get this extra capital from? Here are some ideas to consider.
There are literally hundreds of franchise opportunities in the UK. There are many low-cost franchise opportunities available. Although they vary in terms of the initial capital investment and franchise fees, you can still pursue them on a full-time basis.
It’s a good idea, because you won’t need to quit your job yet. You’ll be able to build your business while earning a steady income. As your business grows, you will have the chance to build up more capital so you can invest in a franchise when you’re ready.
- Franchises that offer financing are the best franchise opportunities to look for
You can look at franchise brands who offer financing as part of your search for the best franchise opportunity.
Many brands understand that aspiring entrepreneurs may not have the money to invest, even if they are the ideal business partners.
Many franchisors “lend” the money to their franchisees to help them get started. They promise to return the money over time, based on how profitable the franchise is. Find out more about Franchise My Business at ashtonsfranchise.com/franchise-my-business
- Consider getting franchise funding through a bank
The fact that franchises have a track record of profitability and will continue to be profitable in the future is one of the main reasons why people buy into them.
In essence, franchising can be recession-proof. This makes them very attractive to banks. You may want to approach a lender or bank for help in financing your costs. The bank should be able for you to repay the loan with profits from your business.
