Lending

Understanding how you plan to finance your franchise business is crucial to begin early into your venture

When to decide if you should utilize loan products to fund your franchise.

Before beginning any franchise venture, it’s essential to gain a comprehensive understanding of your financial requirements. Here’s a few aspects to consider:

Franchise-Specific costs:

Initial franchise fees

Marketing & Advertisement costs

Training costs

Technology & Software costs

Store Prep Costs

Largeware and Smallware equipment and appliance costs

Construction and buildout costs

Operational Expenses

Lease costs

Initial inventory costs

Initial employee training payroll costs

Initial Working Capital reserves

Going into your first month of operating your new business, it’s strongly encouraged to include working capital reserves into your loan amount. This ensures you can cover day-to-day operational costs without distrupting the business in these pivotal early days of being open.

What loan options are available?

Equity management (also known as cap table management) is the system for managing ownership stakes, types of shares, and option pools. Founders, investors, or employees can have ownership, including equity dilution and the total value of equity. A cap table helps understand who owns what, at each stage of the business. Most startups create a voting agreement for common and preferred shares, which determines who needs to vote on company decisions.

SBA 7a loan

Conventional business loans

Equipment financing

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