What is a Franchise Loan?11th December 2017
Franchising allows you to become part of a larger network of businesses that all share a common identity, appearance and market share. Although franchising is a great way of maintaining competitiveness and increasing your bottom line, it’s not without its costs. However, there is a form of business finance that could help in this endeavour. Franchise Loans are designed to help both franchisors and franchisees support the cost of starting, buying, joining or running a successful franchise. So, if the cost of franchising is too much for your business, know that you don’t have to bear it alone. Applying for a Franchise Loan could offer you the necessary support you need to both move forward with your goals and succeed. In this blog we’ll cover:
- Starting your own franchise
- Buying an existing franchise
- Becoming a franchisee
- Supporting ongoing franchise costs
How can I start my own franchise?
Turning a successful venture into a franchise can be a great way of increasing growth and investment, thanks to franchisees buying into your brand. But, starting your own franchise isn’t going to be easy or inexpensive. To get your franchise started you’ll need to cover the cost of the necessary legal, accounting, system, procedure requirements and so on. As such, starting up will amass an array of costs that may prove difficult for your finances, which can be anything from £50,000. But, with a Franchise Loan, you could spread out these costs though finance solutions such as Business Loans, Asset Refinance, Invoice Finance and so on. Plus, if you’re seeking to acquire a headquarters for your franchise’s managerial and administrative operations, you can also apply for a Commercial Mortgage or Bridging Loan.
How can I buy another franchise?
If you don’t want to face the challenges of starting up alone and wish to take over an already-established brand, applying for a franchise loan could be useful in this scenario too. But before buying, be sure to ask why the franchise is being sold and assess its performance, intangible assets, growth projections, financial situation and whether any regulatory changes have affected its operations. If you decide you want to go ahead with the purchase, you can look into using a Business Loan, Asset Refinance, Invoice Finance and so on.
How can I join an existing franchise?
Deciding to become a franchisee is a big decision for your business. However, what holds some business owners back from pursuing this route is the investment outlay, which may involve an initial franchise fee, legal and accounting fees, equipment costs, freight charges, and supplies to even opening day advertising. Plus, depending on your chosen franchise and location, the overall cost can be anywhere from £100,000 to £350,000, or possibly more. This is unfortunate, especially since there is a range of franchise loans available that can help you overcome this obstacle. So if you wish to invest in a franchise and become a franchisee, some of the finance solutions you could benefit from, including straightforward Business Loans, Asset Refinance, Revolving Credit Facilities or Invoice Finance products.
How can I support the running costs of a franchise?
Whether you’re a franchisor or a franchisee, running a franchise can incur a number of ongoing costs. Depending on your affiliation and the franchise, these costs can vary and may include royalties, advertising, service fees, training charges, lease payments, transfer and assignment charges, late fees, bookkeeping, payments for goods and services, furniture and so on. However, if you’re having difficulty managing these ongoing commitments, you don’t need to suffer in silence. You can support them with an array of Franchise Loan solutions such as Revolving Credit Facilities, Invoice Finance, Asset Refinance and so on.
Is franchising the future of your business?
The business community has always been a highly competitive environment, regardless of whether you operate online or on the local high street. Each day, you compete for the attention of potential customers in the hope of maintaining or expanding your share of the market. But sometimes the level of competition can be too intense. So in order to maintain a tangible presence and ensure a steady flow of customers, franchising your business could provide the solution. So if you believe the future of your business lies in franchising, apply for a Franchise Loan today, or find out more with Rangewell.
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