Financing Your Franchise
Accounts Receivable Factoring – Source of Franchisee Funding
Factoring, especially accounts receivable factoring, can be the perfect tool
for your franchise; not only can it help your franchise stay afloat and secure
essential funds, but also allow for you to take advantage of opportunities to
expand. Here are some sample scenarios where accounts
receivable financing is the best option a franchisee can have.
The Federal Reserve Beige Book Economic Summary
For a detailed understanding of how the U.S. economy is
performing review the Federal Reserve Beige
Franchisors and Franchisees: Follow the Housing Market
The most credible indicator of a sustained economic recovery is
residential housing activity. It is housing that will
lead the way out of another recession.
Private Equity in Franchising: The Upside and the Downside (Part 2)
In part two of my article on the role of
private equity in the franchise
industry, we look at which kind of franchisors are attractive to
PE firms, the evaluation process, along with the impact on the
franchisees of acquired companies and what’s in the future.
The Role of Private Equity in Franchising: The Upside and the
This is the first of a two part series on the role of private
equity funds in the franchise industry. We’ll examine a number of
issues, including why there has been a dramatic increase in
PE investments in franchise concepts,
the benefits for franchisors, the impact on the franchisees of
acquired companies and what’s in the future.
What Can Franchising Expect from Lenders in 2011?
There has been a good deal of optimism expressed in recent weeks regarding
projected franchise growth in 2011. Some of this optimism is based upon the
anticipated increased availability of capital for franchisees.
presents a brief overview regarding small business lending in 2011.
Private Equity and Franchising: When Will the Money Get the Game?
On November 17, Craig Tractenberg, Partner with Nixon Peabody
moderated a webinar that dealt with the current relationship between
the private equity sector and the franchise industry.
Learn about deal making, what PE groups
look for in a franchise company and more.
Accounts Receivable Factoring: A Source of Capital
During these tough economic times many franchisees have difficulty obtaining
working capital, factoring can be a quick and reasonably priced source of
capital. This article presents some reasons why.
To Franchisees: Be Wary of Using Company Credit Cards
When starting up a new franchise, odds are the new franchise owners will be
solicited by credit card issuers. Franchisees need to be cautious when it comes
to the use and control of company credit cards.
From time to time,
franchisors and large multi-unit franchisees seek large capital
investments. The key to success is knowing where to look and
what investors will want to know. Here is a presentation that
will put you on the right track for
Franchisees Gain New Financial Benefits Under the Small Business Act
The Small Business Jobs and Credit Act which was just signed by President
Obama provides benefits for franchisees and particularly those franchisees in
the restaurant sector. Here is a short summary of the benefits.
When Will You Break Even?
What kind of sales will you need to cover your expenses? At what
point will you have start to make a profit? Learn
how to calculate the break even
point for a franchise. Then use this
franchisee break even calculator
to get your answer.
Franchisee ROI Calculator
How much can you expect to earn on your franchise investment? Is
buying the franchise you're considering a good financial decision
for you? Find out how to calculate
the return on investment for a franchise and then use our
franchisee return on investment
calculator to do the math.
Financial help from franchisors
Franchisors aren't traditionally thought of as a source of financing
for franchisees, but many do offer financing and other help to new
franchises. Here's what you need to know about
Venture Capital Investment Updates for the First Half of 2010
This article includes results of Venture Capital activity for the
first six months of 2010. Although the majority of investments were
made in the technology sectors increased VC investment represents
positive news for business owners and start-ups. The franchise
industry can take comfort from these results knowing that VC capital
is flowing once again. Given the popularity of clean technology
start-ups perhaps a franchise model will be used to grow some of
these firms in the future. Read more >>
or Lease? You May Need Both to Buy A Franchise; It's Important to Know
Leasing equipment for your franchise can be a viable alternative to
purchasing. Franchisees can preserve valuable working capital and may reduce
their personal liability by leasing versus purchasing their equipment. There are
a number of other advantages that leasing offers.
5 Questions You Should Ask Franchisors about Financing
As you continue your search for a franchise to buy, one important
aspect may be financing. Whether or not you get that financing may
depend on your prospective franchisor.
Here are five financing questions
you should pose to your potential franchisor before buying.
much will that franchise really cost?
There's more to buying a franchise than
your initial franchise fee. Here's how to determine
how much money you'll need to buy a
franchise and get it going.
Venture Capital Investment Trends
Although the level of venture capital
investment was very low during 2009, the Fourth Quarter ended
on a strong note and provided optimism for the level of VC
investment in the current year.
Learn more about venture capital performance
Money Tree Report by PWC