Becoming a franchisee is an exciting prospect – be your own boss, make a business your own, the list of benefits goes on. However, the hefty initial investment can prove to be a barrier for many people who want to get started with a franchise.
Taking out a loan in order to open a franchise can be a superb option should you need the funding. We’ve gathered together some of the most important information on franchise finance to help you make the right decision for you and the business that you want to grow.
Do you need to borrow money to open a franchise?
Technically, no. If you’ve got the capital available to open a franchise, then a loan might be superfluous to your needs, but seeing as initial investments can range anywhere from £10,000 to £500,000 (or more), it’s likely that a loan of some kind will be required in order to get started.
There’s a wide variety of finance options for franchisees to choose from. This can depend on the franchisor. Many of them have established links with lenders already, but some will expect you to source your own funding.