Buying a franchise has become a highly attractive way for entrepreneurs to start a business. According to Statista, there were an estimated 753,770 franchise establishments in the U.S. in 2020, and several hundred new franchise establishments begin operating every week.  

The Benefits of Buying a Franchise 

The key thing is that buying a franchise has been shown to have a higher success rate than starting a business from scratch. Buying a franchise provides a new owner with a developed and proven business model, a brand identity that has already been defined, some existing marketplace awareness, an existing supply chain, some marketing guidance and assistance, guidance and assistance with equipment and supplies, franchisor operating support, peer support, product/service innovation, site selection assistance, and scalability. And compared to starting a business from scratch, a franchise offers better speed to market and faster ROI. 

How to Buy a Franchise 

Before buying a franchise, it is important to decide if this entrepreneurial path is right for you. Define your goals and expectations and know that owning any business comes with challenges as well as opportunities. Then, follow these steps: 

• Research among the many franchises available to determine which one(s) would fit your goals, skills, and interests. Make sure that your candidates have a track record of growing sales and profitability, that they operate in a growing market, that there is neither too much nor too little competition, and that there are plenty of opportunities for repeat business. It is especially critical to find out from existing operators what it is like to work in that franchise system. 
• Begin the application process. 
• Set up a “discovery day” meeting. 
• Apply for financing. 
• Review the franchise paperwork thoroughly and carefully. 

Where to Get Financing to Buy a Franchise 

Sources of franchise financing include the franchisors themselves, traditional bank loans, SBA loans, franchise financing specialists, and alternative lenders.  

Seek Expert Financing Assistance 

To get the funding you need to finance your entrepreneurial dreams, contact First Class Lending. We can provide customized financing solutions to meet your needs.