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I usually don’t provide referrals, but in this particular case it is definitely warranted. Karen jumped through hoops with multiple alternatives until we came up with a solution that provided what we needed. At one time i thought we were at a dead end, but learned that Karen continued to pound away until the right solution surfaced. If you need someone to assist up front with your SBA loan, Karen is a perfect choice.
A number of costs go into the launching a franchise. Initial costs include paying for professional advisers such as a lawyer to look over contracts and an accountant to advise or manage your finances. You’ll also need to invest money up-front for anything your business will need: real estate or lease payments, inventory, equipment, supplies insurance, licenses, recruitment, employee preparation, and signage. A grand opening event and initial marketing expenses will also add to your startup costs. You’ll also want to account for ongoing expenses such as professional services, supplies, employee pay and benefits, rent or property taxes, utilities and maintenance.
Using a stock loan (securities-based financing) allows a potential franchisee to leverage the value of their stocks without giving up ownership of the stocks. Securities based financing allows potential small business owners to get fast, affordable funding, while also having the ability to keep all the upside of keeping their stocks (dividends and stock price growth). Funding usually comes in the form of a line of credit backed by the stocks’ value.
At some point nearly every franchise will seek a loan or working capital. Knowing your franchise financing options can be the difference between thousands of dollars saved or lost. If you are a franchise business owner seeking financing and need help understanding the options, please reach-out to one of our funding specialists and we’ll help you navigate the process.
ApplePie currently has partnerships with 42 franchises, such as 7 Eleven, Dunkin’ Donuts, Jimmy John’s Pizza, and Wetzel’s Pretzels. Other franchise brands can get loans through ApplePie, though the process might take a little longer. ApplePie offers loans for both new and existing franchises, including franchise startup loans, loans to purchase an existing franchise, franchise equipment loans, franchise refinancing loans, and more.
Ideally, your Instagram profile picture should be an image of your logo and be the same one displayed on your website and other social media platforms. For the mobile app, your profile picture should be a minimum of 110 pixels width x 110 pixels height. Your picture will be shown in a circle, so your logo has to be clear when cropped. Have a look at how Deputy’s logo is clearly displayed on our Instagram account.
In some instances the franchise itself will extend financing to you. Some companies, like 7- Eleven, actually build the store for new franchisees and lease the location to you, meaning you incur minimal startup costs and the transaction is handled directly between you and the franchisor. Others, like Subway may buy back locations from existing franchisees and then sell them to you as a new location, meaning you'll be handed an established store, sometimes with existing employees and inventory.
Business to business companies can usually access financing more easily than companies that deal with consumers directly. In this type of scenario, you can use your clients' invoices to obtain financing from lenders. The process of obtaining cash advances using your clients’ invoices is called factoring. The factor takes the role of collecting the full amount owed to you by your client, then deducts the amount advanced to you and any other fee then pays you the balance.
SBA loans are government-guaranteed loans with long repayment terms and low interest rates. There are many different types of SBA loans, but the most popular SBA loans are 7a loans and 504 loans. An SBA 7(a) loan can be used for working capital (marketing, staffing, etc), equipment, or for commercial real estate. The SBA 504 loan is only for commercial real estate and fixed equipment. Franchises are often a great fit for SBA loans, because of the SBA’s policy goals to help build small businesses to grow the economy.
Dave Crenshaw is the master of building productive leaders. He has appeared in Time magazine, USA Today, Fast Company, and the BBC News. His courses on LinkedIn Learning have received millions of views. He has written four books and counting, including The Myth of Multitasking: How "Doing It All" Gets Nothing Done, which was published in six languages and is a time management bestseller. As an author, speaker, and online instructor, Dave has transformed hundreds of thousands of business leaders worldwide. Find out more at DaveCrenshaw.com.
Keep in mind that your ability to negotiate an office lease is dependent on how much leverage you have. Do your homework. Are other companies vying for the same space? Has the space been vacant for a long time? Factors such as these may mean the difference between you calling the shots, or a landlord insisting on onerous terms throughout the lease process.
When you do a ROBS, you basically sponsor a retirement plan under your franchise, rollover funds from your personal retirement plan to the company retirement plan, and use those funds to buy shares of stock in your business. The sale of stock creates the capital needed to start or buy a new franchise or recapitalize an existing franchise. Read our in-depth guide on ROBS to learn more about how it works.
Franchise fee: Most companies charge an upfront fee to start a franchise, paid in a lump sum or installments. The amount varies by company, but it’s typically tens of thousands of dollars and usually is not refundable once a franchisee is accepted. For example, Jamba Juice charges $25,000 per store, and Hilton Worldwide charges $75,000 to start a 150-room Hilton Garden Inn.
He is a nationally recognized speaker and blogger on the topics of leadership, communications, decision-making, problem solving, and other critical business skills. An honor graduate from West Point, Mike served in the US Army as a combat arms officer. Before founding his own company, he was an assistant professor at Duke University, a consultant at McKinsey & Company, and an executive at Capital One and Scotts Miracle-Gro. He is the author of One Piece of Paper: The Simple Approach to Powerful, Personal Leadership (www.onepieceofpaper.com), Lead Inside the Box: How Smart Leaders Guide Their Teams to Exceptional Results (www.leadinsidethebox.com), and The Elegant Pitch: Create a Compelling Recommendation, Build Broad Support, and Get it Approved (www.elegantpitch.com). Mike's blog and the programs he teaches can be found at www.thoughtleadersllc.com.
It’s natural to consider if these options are worth the possible bad effects down the road. Of course, for some business owners, not getting more financing as soon as possible could mean having to take drastic measures—even closing the business. The silver lining here is that most of the above will help recover your credit if you keep in good standing and make on time payments. There is a caveat: if you can’t make on time payments, these options will sink your business into debt and make matters worse.
Franchise businesses serve as the backbone of the restaurant and retail industry. A successful franchise often starts as a small local business that catches the eye of savvy investors. Starbucks, McDonald’s, Walmart and Whole Foods are just a few of the many corporations that started as small mom-and-pop operations and were later franchised into nationwide networks.
SmartBiz does not originate loans. Rather, it is a service that matches business owners with SBA-preferred banks. If you don’t qualify for an SBA loan, SmartBiz can match you with one of its non-SBA partners to secure a loan. While SBA loans have the lowest interest rates and longest repayment terms — up to 10 years for most loans — you might still be able to get a medium-term non-SBA loan with an interest rate as low as 7.99% through SmartBiz.
Our course starts at the very beginning with setting up QuickBooks for your business. We cover how to record your income and expenses, how to manage bank and credit card transactions and how to run financial statements. There are a total of 39 tutorials in our QuickBooks course spanning seven lessons. Each lesson has been broken down into bite-sized tutorials. Each QuickBooks tutorial includes a video where we demonstrate the concepts presented in each lesson.
He holds a FINRA Series 79 license (M&A investment banking), and a California real estate broker's license. He has sold businesses of his own as well as other people's businesses. Prior to law school Dana was assistant pastor at Calvary Foursquare Church in Hemet, California, and associate pastor at Cathedral of the Valley in Escondido, California. He was the vice principal of Escondido Christian School, and dean of Cathedral Bible College, where he also taught philosophy and theology.
The lender will want to know how much funding you are seeking and how the loan proceeds will be used. Will the loan be for equipment or capital expenditures? Expansion or hiring? Increase in inventory? Enhanced sales and marketing efforts? New research and development of technology? New product development? Expansion into new facilities or territories?
Many new franchisees will need to find financing in order to fund the startup costs of their business. Franchise financing options can include ROBS, SBA loans, crowdfunding, home equity lines of credit, and even raising money from friends and family. We’ll cover these options in more detail, but first let’s take a look at the summary of each option in the table below.
A Rollover for Business Startups (ROBS) lets you take retirement funds from a 401(k), traditional IRA, or other eligible retirement account and invest them in your franchise, without having to pay taxes or an early withdrawal penalty. You can fund all or part of your business through a ROBS. Funds from a ROBS can be used as a down payment on larger financing, like an SBA loan, or to bridge the gap between other piecemeal loan financing options, like equipment leases, etc. Funds from a ROBS can also be used for franchise fees, consulting fees, and other costs that traditional loans often can’t be used for.
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Working capital loans. A working capital loan is a debt borrowing vehicle used by the company to finance its daily operations. Companies use such loans to manage fluctuations in revenues and expenses due to seasonality or other circumstances in their business. Some working capital loans are unsecured, but companies that have little or no credit history will have to pledge collateral for the loan or provide a personal guarantee. Working capital loans tend to be short-term loans of 30 days to 1 year. Such loans typically vary from $5,000 to $100,000 for small businesses.
Trademarks. A trademark right protects the symbolic value of a word, name, symbol, or device that the trademark owner uses to identify or distinguish its goods from those of others. Some well-known trademarks include the Coca-Cola trademark, American Express trademark, and IBM trademark. You obtain rights to a trademark by actually using the mark in commerce. You don’t need to register the mark to get rights to it, but federal registration does offer some advantages. You register a mark with the U.S. Patent and Trademark Office.
Your accounting system is necessary in order to create and manage your budget, set your rates and prices, conduct business with others, and file your taxes. You can set up your accounting system yourself, or hire an accountant to take away some of the guesswork. If you decide to get started on your own, make sure you consider these questions that are vital when choosing accounting software.
He has been on the full-time faculty at Rice University, the University of Arizona, and the Hong Kong University of Science and Technology (HKUST). He has also been an Executive MBA lecturer at HKUST, SKOLKOVO (Moscow School of Management), China Europe International Business School (CEIBS), the University of Illinois (US), and INSEAD (Singapore and Paris). Professor Kay Stice has received awards for high-quality teaching at Arizona, Rice, and Brigham Young University, and he was twice selected as one of the top ten lecturers at HKUST.
If you own the business entirely by yourself and plan to be responsible for all debts and obligations, you can register for a sole proprietorship. Be warned that this route can directly affect your personal credit. Alternatively, a partnership, as its name implies, means that two or more people are held personally liable as business owners. You don't have to go it alone if you can find a business partner with complimentary skills to your own.
There are plenty of resources that business owners can refer to when putting together their loan applications. The Small Business Administration, for example, provides a highly detailed loan application checklist for borrowers. Using these resources can decrease your likelihood of coming across as disorganized or unprepared. [See Related Story: Applying for a Small Business Loan? Here's What You'll Need]