Did you know that you can buy some franchises for as low as $1,500 to 2,000?
The franchise fee itself is a small portion of the total amount you will need. On top of the franchise fee, you will also need enough financing to cover start-up costs; we recommend having enough working capital to operate your new franchise for the first six months or so.
Unless you have enough money available to buy the franchise in which you are interested debt free, you are going to have to borrow, perhaps from retirement funds you have saved over the years or against the value of securities you own or the equity in your home. Another option is that you may be able to obtain a loan from the Small Business Administration (SBA) or from a bank. Some franchisees find that they need to obtain funds from multiple sources to make sure they have sufficient funding.
One of the advantages of working with Triton is that we are a direct lender (through Triton Global Capital, a subsidiary of Triton Business Group) and have all the resources in-house to arrange funding for your franchise purchase. As a direct lender, we have a vested interest in your success—we want you to succeed so that we get our money back!
That is why we will put a lot of effort into getting to know your financial situation and personal and business history before we try to match you with specific franchises. It enables us to pre-qualify you for a particular dollar amount and recommend only franchises that are within your budget.
Many lenders routinely require an equity stake in any business they lend to, but Triton does not. Most often we are able to finance a franchisee with only minimal collateral and no equity requirement. For loans under $250,000 to creditworthy franchisees, we typically do not require collateral.
Working with Triton also makes the whole funding process easier than if you were to borrow from another source: less red tape and paperwork, a quicker turnaround, and a larger sum.
The All-Important Franchise Disclosure Document (FDD)
Franchisors have a legal obligation to disclose information about their franchise system to prospective franchisees. They are required to give you a Franchise Disclosure Document (FDD) before selling a franchise, and most franchisors will also provide supplemental materials like brochures or DVDs. You will find this information very helpful in confirming your interest in a particular franchise or in comparing several different franchises that might be right for you.
The FDD includes the actual Franchise Agreement, as well as any other agreements franchisees must sign. In addition to such agreements, an FDD provides information about: the franchisor; key staff; the company’s franchise management experience; any bankruptcies or litigation in the franchisor’s history; all investments, purchases, and fees you will be responsible for in owning and operating the franchise; your territory rights; specific responsibilities of both the franchisor and franchisee; and contact information for other franchisees you can speak to about their experiences with the franchise system.
The information in the FDD alone may not be sufficient for making a truly informed decision. You will need to do more research, including talking to some current franchisees and seeking other sources of information. One of our Certified Franchise Consultants will be a great help to you in this due diligence effort. Fortunately, the law requires a 14-day cooling off period between a prospective franchisee’s receipt of an FDD and signing the Franchise Agreement, so take your time and make sure that the decision you make is the best possible one for you, your family, and your future.
Using the right team to provide guidance will save you time and thousands of dollars during the franchise purchasing process. Once you decide which franchise opportunity is best for you, contact Triton or call 770-249-2357 for a no obligation FREE consultation and we can provide you with several funding options. Let us help you get on the road to financial freedom the right way!