You’ve done all your homework and you’ve concluded that a franchise is a great option for you to get into business. You think you’re ready to take the plunge- but before you sign that dotted line, you must ask yourself an important question:

Where do you plan to find the money to finance the franchise, working capital, inventory, and royalty fees?  

First of all, you must determine your net worth. You can use a balance sheet to list your assets versus liabilities. Then, subtract your liabilities from your assets. This will show you what you’re worth.

Next, you should order a copy of your credit report and review your credit rating. Some of the things that potential lenders look for in your credit rating are stability, track records, and income.

Draft a Business Plan

Once you have determined your net worth and looked at your credit rating, you need to draft a business plan. A lender is going to want to see it. This will show the lender how serious you are with pursuing this business. This can make or break your loan application. If you’re not familiar with creating a business plan, there are several places where you can get help.

Get Financing from the Franchisor

Typically, the first place a franchisee will go for financing is the franchisor. Nearly all franchisors offer debt financing. Some will carry the entire loan, while others carry only a fraction. Plus, these loans can be structured in a variety of ways. Some of them offer a loan based on simple interest, no principle with a balloon payment due 5 to 10 years in the future. On the other hand, some offer no payment due until after the first year.

Other Financing Options

Once you’ve determined the financing available through the franchisor, consider other options that may be available: friends/family, VA loans, SBA loans, bank loans, alternative financing, and more.


You’ve done your homework and believe that a franchise is your best option. Contact Achieve Capital Advisors to learn more about franchise options and to get started.