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Small Franchise Funding

    • 11 posts
    June 10, 2013 3:51 AM EDT


    My recommendation would be network marketing.  While I'm no Zig Ziglar, I did make a bit of money at it.  Network marketing has low overhead and residual income.  However, don't go with a company that has a physical product because you'll buy a lot and let it rot.  Go with a service based business like telecom or financial services.  Franchise fees range from a few hundred to a few thousand.  You have the same potential return on your investment as a McDonald's franchise


    Joe Haffey, President Happy Brands Web Services

    • 11 posts
    June 12, 2013 4:21 AM EDT

    No.  I'm talking about network marketing, aka multi-level marketing, etc.  The startup costs are so low you wouldn't need an investor pool. 

    Joe Haffey, President Happy Brands Web Services

    • 10 posts
    July 18, 2013 6:05 AM EDT

    Ron - First, congratulations on the degree!

    Have you discussed with close friends/family or Crowdsourcing for this?

    We work with a firm that specifically assists Start-ups and small business owners and may be able to help.

    Feel free to connect or visit our site - lk

    Linda King, Owner of Legacy Asset Solutions - Powerful & Effective Financing Solutions.

    • 927 posts
    June 10, 2013 4:43 AM EDT


    There are a number of ways to bring capital into a business.

    Generally, the franchisor offers some financing assistance-either directly or via a third party financing company. 

    Even if you can't qualify for a loan at your bank, I would talk to them about how they evaluate a franchise purchase. This could give you some good insights.

    A business with steady a steady revenue stream and high margins offers some interesting alternative financing possibilities.

    Good luck with your quest. If you want to discuss your specific situation, drop me a PM or contact me directly.




    Business Growth Masters, LLC -
    Capital Catalysts for Entrepreneurs
    Home of the Scalable Business Plan and QuikStart Capital Programs

    • 2 posts
    June 10, 2013 3:34 AM EDT

    Hi all. I am an MBA student - set to graduate in August - and I have been talking to a business roundtable franchisor called CEO Focus. I like this business model a lot, and I feel that I would be very good as a CEO Focus franchisee/facilitator. Some of the things I like about the business model are:

    • Overhead is minimal. There is no need for inventory, employees, or office space.
    • Income is steady. Clients continue to pay on a monthly basis, and client turnover tends to be low.
    • This type of business is not very susceptible to market fluctuations.
    • Net earnings, before tax, can quickly reach $300,000 per year. (But that's where earnings plateau.)
    However, as you may expect, it does cost money. The franchise fee is $25,000, and I estimate another $35,000 on top of that to cover initial marketing expenses and some miscellaneous expenses. But here's the problem: being a full-time student, I'm already saddled with a lot of debt, and I can't show a lender any steady income. So a bank loan is out of the question. As for equity investment, the income plateau and lack of scalability makes that less than ideal. So...what should I do? Are there any other funding options out there that I am missing?
    • 2 posts
    June 11, 2013 8:19 AM EDT

    I appreciate the responses.

    joehaffey: This is a service-based franchise, but it is neither telecom nor financial services. As for network financing, I assume you mean finding angel investors, etc., right? Yes, at the moment, I feel that this is my only option. One of the problems that I face is that I am not looking to sell equity, but to raise debt financing. As there is a revenue ceiling here, equity financing would not make much sense for either party.

    robertj: As I am just now purchasing this franchise, and as I do not currently run one, I do not have any income streams to speak of. This is one of my problems. I suppose I can try to talk to a lender face-to-face, but if my online research is indicative of what I will find, I think I would just be wasting everyone's time.

    ashleybrown: If I understand correctly, merchant cash advances are based upon past revenues from credit/debit purchases. As I am not yet in this business, I can provide no such evidence of revenues.

    What I would like to do is raise $60,000 in debt financing under the agreement that I will repay $35,000 at the end of each year for the next three years, with the ability to pay off the debt early at a reasonable discount. Could anyone give me some ideas about how I could pitch this to potential investors - and how to find them?

  • January 10, 2014 4:25 AM EST



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    • 19 posts
    January 13, 2014 1:14 AM EST

    You can contact some good venture capital firms. They not only helps you in finance as well as also help you in building your market and reputation in the global market which is very important for thestartups otherwise it'd be quite tought to handle the business after a few years or even months.