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 Book.

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 Downside

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. This article 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.

Sourcing Capital Investments

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 sourcing capital.

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 franchisor financing.

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 >>

Loan or Lease? You May Need Both to Buy A Franchise; It's Important to Know Your Options

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.

How 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 from the Money Tree Report by PWC