Understanding the Best Strategy for Funding Your Franchise Investment

Understanding the Best Strategy for Funding Your Franchise Investment

Investing in a franchise can be a complex process. With the research involved, location scouting, number crunching, and everything else, franchisees understand that there are many complexities included in the undertaking. And perhaps one of the most important components when you’re investing in a franchise is how to finance it. It’s vital that you’re able to secure financing that makes the most sense for you and your goals. 

At Lennys Grill & Subs, we support our franchisees, and we want to make sure that they are able to find the best financing solutions for their needs. We’d like to share our insights and expertise to help you succeed! Here are some franchise financing basics: 

• Shop Around for Traditional Bank Loans Many potential franchisees are attracted to commercial bank loans because of the low interest rates banks can offer. However, securing a bank loan for a commercial investment can prove to be difficult; banks often require outstanding credit and a sustainable business model. Luckily, when you invest in an established franchise as opposed to an independent startup, financial institutions are usually more likely to lend money. It’s definitely worth your time to try and secure a loan from a bank.

• Try to Secure a Small Business Loan Small business loans are a preferred loan for potential franchisees. Because they’re backed by the U.S. Small Business Administration, an SBA loan is often an attractive option. It’s important to remember, however, that these loans can be difficult to secure. Additionally, the process of obtaining an SBA loan can be lengthy.

• Don’t Give Up!  Finding the right financing for your restaurant franchise investment can be difficult. Most people don’t find their ideal solution right away. Don’t be afraid to do your research and explore all of your options with potential partners, financial investors, and creative personal loan options.

Our team at Lennys Grill & Subs are here to help! Your success is our success when we’re working together. Let us come alongside you and help you purchase your own food franchise! Contact our franchise team at Lennys Grill & Subs today!