Starting A Franchise Business: Frequently Asked Questions
Opening a franchise business is a great choice for people who are thinking of diving into entrepreneurship for the first time. Franchise businesses are also good for more seasoned business owners, who want to eliminate the guesswork from launching a new operation.
Which franchise business is the best?
There is no one answer to this question. Many people will choose a franchise business which aligns with their interests, so that running the operation seems more enjoyable. Others look at trends in consumer interests, and jump on franchise opportunities to tap a new market, and then sell of the franchise business when it has reached its peak. Some simply look at bottom line numbers, and pick the most profitable franchise business in their region, to provide a steady income.
Can you run a franchise in your spare time?
In some cases, yes. Franchises can be set up so that you, as the owner, focus on things like financial reports and sales, while managers and staff ensure the business runs smoothly. Many franchises, from cleaning services to restaurants, and even hotels, offer a “hands off” model to business owners.
How much does a franchise cost to launch?
Franchise businesses can cost a little over $1000 to open, all the way up to a few million dollars. A franchise business in the field of travel, which can be run out of a home office, will only cost anywhere from a few hundred to a few thousand dollars. On the other end of the scale, high rise hotels can cost millions to launch. It is always best to figure out a budget and stick with it. Franchisors usually want people to have a financial cushion to handle unexpected costs, especially if the franchise business requires a physical location or involves construction.
How do I finance a franchise business?
The first rule of business transactions is to never use your own money. Many people fail before opening day by placing their life savings on the line to open a franchise business. SBA programs can cover a good portion of the cost of opening a franchise. Other costs, such as equipment leasing, commercial real estate acquisitions, and construction, also need to be taken into consideration. Many traditional lending sources are wary of first-time business owners, so many franchisees use commercial financing to get the funding they need.
Finance your franchise business
At Vantage Commercial Capital, we specialize in financing all aspects of franchise businesses. Contact our offices today to learn more about our wide array of affordable programs for your franchise.
