A few franchisers offer internal financing. For example, a company may defer a portion of the initial franchisee fee, essentially financing the deal. Interest rates and Fees are likely to seem high compared to other options. However, you may not have to put up collateral.
Bankers favor businesses with brand names and long track records of consistent cash flow, so your choice of a franchise system can help or hurt you. Ventures with few locations are less attractive, in part because they lack proof that they can do well in all types of areas or economic climates.
Small-business franchise opportunities for millennials who aren’t rich aren’t easy to come by.
That can be incredibly frustrating if you’re in your 20s or early 30s, and you’re itching to own a franchise. If you’ve run into any fans of franchising, you’ve probably heard their spiel. They may tell you that it can be a great, stable way to make an income. You get to own a business without the risk, they may say, because you’re buying a business model that’s been proven to work. (Though, that’s not true—every business is a risk and plenty of franchises fail for a variety of reasons.)
The same people may also tell you buying a franchise is a good way to become rich. After your first franchise is raking in the money, they may say, you can use that money to buy a second one—and then a third. And then a fourth…