What can a Franchise Loan be used for?Published on 23rd May 2018 - Last update on 30th October 2018
Whether you’re looking to become part of something bigger or if your goal is to see your business establish itself in new markets, franchising could be the key to your success. At the heart of every business is the desire to grow and expand, but you may have some very unique ideas regarding how you will achieve this. So whichever direction you wish to steer your business in, a Franchise Loan could help you explore and achieve your goals for a brighter and more profitable future. Offering you access to a variety of finance products, such as Business Loans, Invoice Finance and Asset Refinance, a Franchise Loan can be used to:
- Become a franchisee
- Franchise your business
- Take over a franchise
Joining a Franchise
If you’re new to your chosen sector or are looking to connect with a wider network of like-minded business owners, becoming a franchisee could prove an invaluable opportunity for your business. By investing in a franchise to become a franchisee, you’ll be able to gain access to a wide variety of benefits, including established brand recognition, faster growth, expert industry advice, reduced risk and group purchases for lower asset acquisition costs from a trusted vendor.
However, becoming a franchisee will incur a variety of costs. The size of these costs depend on the size of your premises and location and can include staff training costs, an initial franchise fee, refurbishment, freight charges, supplies and even opening day marketing costs. When totalled, these costs can often come in somewhere around £100,000 to as much as £350,000, or beyond. Paying such large sums from your capital can be more than what your business can handle in one go, which is why applying for a Franchise Loan can be so vital. Although some lenders may require you pay part of the joining costs, a Franchise Loan allows you to borrow the rest of the sums that are required.
Franchise your business
If you’re planning on becoming a franchisor, a Franchise Loan can help you reach the next step in your business’ development. A major business decision that needs to be considered carefully, you’ll need to carry out everything from market research, seeking advice from industry consultants and solicitors, setting up the franchise’s systems and procedures to staff training. Depending on the industry, the amount of research needed and the complexity of the necessary work to get your franchise operating, you could be looking at costs totalling in excess of £50,000. A Franchise Loan can help gain the funds that you can use to get your venture off the ground, sparing you to need to part with large amounts of cash all at once.
Buying a Franchise
If you’re not keen on starting a franchise from scratch or are looking to reduce the amount of competition you’re facing, purchasing an existing franchise could prove advantageous. Yet, as always, it’s a decision that needs to be considered with the utmost care. You’ll need to look into all aspects of the franchise you’re interested in, including sector, brand recognition, profitability, the number of associated branches, locations, market share and so on. As such, the total worth of any franchise can vary considerably. But by scrutinizing every aspect of the franchise in question, you’ll be in a strong position to know whether it’s a worthwhile investment in order to proceed to any price negotiations. And, of course, a Franchise Loan can help support you financially and spread out the purchase price that the current franchisor offers you.
In need of a Franchise Loan?
For many business owners, a franchise represents a convenient solution to an all-too-familiar issue. Competition. If the amount of competition you’re facing is too high, you could see your customers going to your competitors and threatening your long-term sustainability. However, whether you’re choosing to join or establish a franchise, the move will incur a variety of costs. So if you’re interested in taking your business to a new level, or are intent on becoming part of a wider network, apply for a Franchise Loan today, or find out more with Rangewell.
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