Specializing In Franchise Business Loans & Financing
Apply now! It’s quick, easy and free.
Small Business Loan Options For Existing Franchises
Franchises are consistently vulnerable to cash flow issues thanks to the many mandatory expenses they face throughout the year. On top of operational expenses and growth-related investments, franchises must obey their parent company’s fee guidelines, or “Franchisor.” Royalty and advertising fees are deducted from weekly or monthly sales. Some franchise owners must pay for new employees to undergo special training programs. Certain upgrades might be required for specific dates, and the national marketing campaigns that come from the aforementioned deduction must usually be supplemented by local advertising.
​
The challenge is even greater for franchise owners looking to open new locations. They must pay a “franchise fee” amounting to tens of thousands of dollars, and the aforementioned deductions begin as soon as the new location opens its doors. Combine these expenses with inevitabilities like new equipment or furniture, and you can see why business loans are popular for franchises. Multiple large expenses can easily pile up simultaneously, making it extremely difficult to raise profits or save money.
​
And don’t forget that franchise owners don’t get to choose when to schedule expenses or which suppliers to work with, unlike their independently-owned competitors. The franchisor might have passed down their business model. Still, it’s up to the franchise owner to figure out how to grow the business without endangering profits or failing to cover mandatory expenses.
​
Easy Capital Loans has many years of experience facilitating Small Business Loans for Franchises. We have access to all types of business loan products. Contact us today for your FREE business funding consultation!