Video: Financing a Franchise Purchase

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Financing the purchase of a franchise is best done by going directly to the franchiser, who may be willing to take an initial fee and loan the rest. Find an outside source for a loan to finance a franchise with information from a portfolio manager in this free video on business strategies.

- Becoming an Angel Investor

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Video Transcript

If you intend to finance part of the purchase of that franchise, today it's going to be very difficult as most banks and investment banks will not make loans to anybody for any product. Therefore the best source that you have for capital is the franchiser. Go right back to them and say OK, I'm willing to pay the initial fee, where do I get the rest of it? Because if they've been smart along the years they've been building up capital and now maybe they're actually starting to lend it out to franchisees in order to keep their development going. Second, you can actually go to the franchisees. If it's such a great deal, well maybe somebody's willing to loan you money who is already in the business to build your own. They get a piece of your business, everybody's happy. Those are your two best bets today. I'm Roger Groh at Groh Asset and thank you very much for spending time with me.

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Financing a Franchise Purchase

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