Franchising is a major force in the American economy. A new franchise business opens once eight minutes.

Franchising is a business model used by more than 70 different industries. Business names you see every day on store fronts, advertisements, and vehicles are franchises. Industries as diverse as real estate, education, management training, home cleaning, fire and water restoration, physical fitness, dry cleaning and hair salons, etc., all include successful, thriving franchise models.

Franchising can be an excellent way for a new entrepreneur to go into business. Franchises are easier to start and typically much more successful than new, independent businesses.

Joining a solid franchise model provides entrepreneurs with business models that have been developed and refined over the years. The model serves as a road map to starting and building a successful enterprise. Franchising is truly a way to be in business for yourself, but not by yourself.

One of the greatest challenges new franchisees face is putting together loan packages to obtain financing. Franchise candidates can research the business models at great length by interviewing all current and past franchisees, who must be identified in the Uniform Franchise Offering Circulars. However, it still is difficult to come up with solid numbers and projections for the business and financing plans.

Most franchisors decline to provide in-depth financial information to potential franchisees, other than providing a range of the investments necessary to acquire their units and to take them through their startup periods. That does not mean the companies are hiding something. It simply means they recognize that in the final analysis, how well businesses will do (or not) is largely up to the owners' efforts, the market, and circumstances unique to each market.

Franchisors do not put themselves in a position where future franchisees might say “You told us we would make this or that amount of money. Now we're unhappy and it's your fault.” In our lawsuit happy society, franchisors have learned it is best for prospective franchisees to engage in a careful due diligence process. Their research enables them to come up with statistics and projections about the franchise costs and profits. The data then can be understood and compiled so it can be used in the business and financing plans.

Business Financing Network (BFN) has extensive experience in working with new franchisees. Clients have joined over 50 franchise systems. We do not engage in the sale of franchises and do not provide earnings information.  However, we understand the franchise business model and guide clients in researching and compiling financing information they will need for their loan requests.  We then assist in assembling loan packages and submitting them to lenders across the country who deal with the franchise industry and franchisees.

Give us a call or send us a message once you've found the franchise company you want to join. BFN will provide independent and practical guidance in obtaining the financial information you need, and we can help you obtain funding for your new franchise.

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