Small Business Financing and Franchise Financing Blog

How to Choose and Finance a Franchise Opportunity

Wednesday, January 20

Millions have lost their jobs and competition for employment is becoming intense. According to the U.S. Commerce Department, wages and salaries dropped 4.7% in the previous 12 months ending in June 2009. With so many out of work, the competition for jobs is causing wages to fall. This does not bode well for the job seeker. Is it time to finally take the plunge and start that business you’ve always dreamt about? If you find yourself out of a job while the economy sorts itself out, you may want to consider determining your own destiny and purchase a franchise opportunity.

One of Guidant’s specialties is in arranging alternative franchise financing options. In fact, Guidant believes you already have the money to invest in a franchise. It just takes a little ingenuity and creativity (traits that are critical to business success) to arrange franchise financing that provides the best opportunity for success.

How to Choose a Franchise:

The International Franchise Association, of which Guidant is a member in good standing, reports that there are in excess of 1,200 franchise brands in the United States. That’s a lot of due diligence to consider. So, how does one sort through these opportunities and choose a franchise that fits their needs?

Choose a franchise that interests you. What are your interests, goals, and hobbies? Don’t just focus on your current interests. Is there an activity or hobby you previously enjoyed that you haven’t thought about in years? Get creative and brainstorm ideas.

Consider the amount you can invest. This may eliminate higher-priced franchises if you are unable to obtain business financing. We should note here that you may be able to invest your retirement funds into a franchise opportunity. A Guidant representative will walk you through the process. According to the ERISA (Employee Retirement Income Security Act) of 1974, potential franchise owners can finance their own business from their retirement funds with no taxes, penalties, or debt. Intrigued?

Perform due diligence before signing a franchise agreement. Enlist the services of a CPA and attorney before making an investment in a franchise. It’s just good business practice.

A Creative Franchise Financing Option

We understand the hardships associated with obtaining franchise financing in the current economic climate. That’s why we focus on coming up with solutions that allow our clients to obtain the capital they require for business ownership. And for most of our clients, the money is obtainable from their 401k or other retirement funds. We can show you how to investing these savings into a franchise without incurring early-withdrawal taxes and penaltiesYou’ll be able to control your livelihood, the success of your franchise, and the growth of your retirement fund. That’s destiny.