Franchise Funding and Finance

Franchise funding questions are among the most critical questions for anyone thinking of buying a franchise. The ability to secure franchise funding is often key to a potential franchise owner’s decision to move ahead with the purchase of a franchise opportunity. Although there are many possible sources of franchise funding, the best avenue is usually with reputable franchise loan consultants.  But where do you find reputable franchise loan consultants?

 

In Chapter 13 of The Educated Franchisee, you’ll find a thorough discussion of franchise business financing. The chapter includes discussions on both debt and equity funding. By the end of the chapter you will have a thorough understanding of the various options available for franchise funding.

 

Prospective franchisees have many options in terms of franchise funding. These options include hiring franchise loan consultants, getting bank loans, home equity and more. What follows is a list of reputable franchising loan consultants and other sources of franchise funding information.

 


 

Premier Franchise Funding Sources

 

Benetrends

Benetrends, Inc. (franchise loan consultants)
866-423-6387  www.benetrends.com

BeneTrends has been helping entrepreneurs launch their dreams successfully for nearly 30 years, with proven and innovative funding strategies that make the most of opportunity, while minimizing risk. Benetrends has been at the forefront of developing 401(k)/IRA business funding, without penalty, and is regarded as the authority in franchise and small business funding. Benetrends has decades of expereince and can be a reliable partner as you explore your financing alternatives.

Franfund

FranFund (franchise loan consultants)
1 877 372 6386 www.franfund.com

At FranFund, we are to franchise funding what a concierge is to the hospitality industry: a single, expert resource that will search the marketplace for the best options to fund your franchise and then provide you with one or more capitalization solutions based on your individual needs and goals. At FranFund, we do the homework, the legwork, and the paperwork. So you can focus on growing your business.

Guidant

Guidant Financial Group (franchise loan consultants)
888-472-4455    www.guidantfinancial.com

Guidant Financial Group is the premier provider of business-funding solutions through IRAs and 401(k)s. By using Guidant’s retirement account structure, you can effectively finance your enterprise and earn a higher return within your account. Launching your business with retirement funds instead of debt financing significantly lowers overhead – a tremendous advantage for any new business. For those who need additional financing, Guidant’s program allows multiparty purchases and combining retirement funds with loans. Let Guidant Financial Group put you on the fast track to success!




 

Other Sources of Quality Franchise Funding

Catchfire Funding (franchise loan consultants)
877-702-2040  www.catchfirefunding.com

Diamond Financial Services (franchise loan consultants)
877 508 2274 www.franchisefunding.net or http://www.easysba.com/

Directed Equity (franchise loan consultants)
877-839-8064 www.directedequity.com

Franchise Finance (franchise loan consultants)
501.228.4047 www.franchise-finance.com



 


 

Other Franchise Funding Resources

 

SBA

SBA Registry
http://www.franchiseregistry.com/registry/

The SBA Registry lists names of franchise companies whose franchisees enjoy the benefits of a streamlined review process for SBA loan applications. Loan applications for registered franchisors can be reviewed and processed quickly and efficiently. Small business owners get better service and quicker loans.

SBA

SBA Loan Information
http://www.sba.gov/services/financialassistance/sbaloantopics/index.html

The SBA offers numerous franchise funding programs to assist small businesses.  It is important to note, however, that the SBA is primarily a guarantor of loans made by private and other institutions and does not offer franchise funding loans directly to small businesses.

SBA

SBA Charge-Off Table by Brand

https://opendata.socrata.com/Business/Franchise-Failureby-Brand2011/5qh7-7usu

This table provides 2011 Charge-off data for approximately 550 brands that used the SBA program to secure franchisee loans.  This list is not complete but it is a good stating point if you are lookng for this type of data.

Patriot

SBA Patriot Express Program
http://www.sba.gov/patriotexpress/index.html

This program was introduced in 2007 and is targeted to benefit many US citizens with military service backgrounds and those individuals seeking to transition into private-business ownership.


 

If you need franchise funding sources, we hope the above list of franchise consultants and other lenders will be helpful.  If you know of any other franchise funding resources or if you specialize in franchise funding and would like to be listed here, please email us at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

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