Top 5 Franchises That Can Help You Get Financing

When opening a franchise, one of the most difficult aspects of getting started is securing financing for your venture. While there are a number of options for securing a franchise loan, one of the best methods is choosing a franchise where the brand will help you with financing. As you consider opening a franchise, this is an important aspect that you should make sure to consider and discuss with your prospective franchisor. Luckily there are a number of franchises that have set up financing programs designed to help their franchisees gain access to financing and grow their business. In this article, we’ll cover all of the best companies that offer this opportunity to their franchisees.

What Are the Top 5 Franchises that will Help Provide Financing?

Not all franchises provide funding. Below are the top five franchises that help their franchisees secure financing.

1. The UPS Store

UPS Stores are a very popular franchise. As one of the largest shippers in the world, UPS has helped facilitate its growth through franchise store locations where customers can have items packaged and shipped. While they do have some company operated distribution centers, the franchise locations are more suited for every day customers who want access to a multitude of services that distribution centers don’t offer. When it comes to businesses assisting the financial needs of franchisees, UPS is one of the best. They offer numerous options for franchisees to acquire the financing they need to open their own UPS Store. UPS even developed a tool for assessing your financing qualifications and starting the pre-qualification process. With this tool, individuals can get an idea of the funding options they qualify for, see a side-by-side comparison of the different options, along with an understanding of their maximum funding amount. In addition to this, UPS offers special rates for veterans that enable them to save $10,000 off of the UPS Store franchise fee, along with 50% off the initial application fee.

2. Fastsigns

Fastsigns is a franchise company that provides custom sign and graphic products, that has almost 700 locations worldwide. Currently, Fastsigns has partnered with certain financing companies to help franchisees gain access to funding for their stores. Additionally, Fastsigns offers franchisees 50% off their first year’s royalties so that they can reinvest in promoting and marketing their Fastsigns franchise. This is a great incentive for new store owners since it helps bring even more customers in the door right as you’re getting started.

3. Chem-Dry Carpet Cleaning

Chem-Dry Carpet Cleaning is a franchise that specializes in cleaning carpets with a patented Hot Carbonating Extraction method. They are a worldwide company, with over 3,000 locations. Chem-Dry enables franchisees to get started with an in-house financing system. Their system will help franchisees finance both the initial franchise license fee and, more importantly, the all-important equipment package required to get started. This is a considerable benefit as the equipment of starting most franchises is costly, especially for a business like carpet cleaning. Like many brands, they also have a special program for veterans, including a 10% discount off the initial licensing fee.

4. FireMaster

FireMaster franchises provide businesses with consultations and set-ups regarding fire suppression equipment and systems. They outfit industrial and commercial companies looking to increase the safety of their workplace. It’s a perfect franchise for retired firefighters or business consultants who want to help companies operate more safely. FireMaster offers franchisees the opportunity to finance their franchise fee for up to 14 years, with interest rates that are based on the market’s prime rate. Such a program is really innovative for franchise brands, who usually make significant profits off the franchise fees they collect. Choosing a brand that will help you get started with a financing offer is a great plan for many aspiring franchisees.

5. Cruise Planners

Cruise Planners is an official American Express Travel Representative. Their franchises are a bit unique compared to the others already covered on the list. Instead of opening up a storefront, Cruise Planners follows a home-based model, meaning you don’t need office space to run your franchise. They offer franchisees an in-house financing program to finance 50% of the franchise license fee over the first 12 months in business.

Outside of In-House Financing

Though in-house financing systems are offered by only a select few brands in the franchise world, this doesn’t mean that franchise companies can’t and won’t help you out. Many of them have formed relationships, and even tight partnerships, with financing companies over the years. In many cases, they’ll be able to point you in the direction of the right financing options to help you fuel your business. These programs can be as structured as a third-party financing program specifically geared for that particular franchise brand, or as informal as a preferred lender who has frequent experience. This is beneficial for a number of reasons. Lenders that have worked with particular franchises on a frequent basis will have a fundamental understanding of the business and what exactly you’ll need to start or grow your franchise. Additionally, if they have experience with the business and it has been beneficial over the years (meaning few defaults and a track record of successful clients), they’ll be more comfortable providing you with a loan. This can lead to more favorable terms, such as lower interest rates. In light of this, before taking out a business loan for a franchise, it is important you speak to your franchising consultant from the franchisor and ask them if they have any connections or useful guidance and advice. Remember, they want you to succeed just like you want yourself to succeed, so don’t hesitate to reach out to them.

Other Things to Consider

Whether franchised or not, all small businesses need funding throughout their growth path. But remember, just because your franchisor offers in-house financing does not mean you should necessarily take it. If you have a good credit history, a sound financial background, and valuable assets, you may be able to find better financing options through other sources. You should always make sure you’ve devoted enough time to researching your options. You need to find a funding provider who will help your business actually succeed. Additionally, just because the franchise will help you finance the equipment or help you finance the initial licensing fee does not mean they’ll help you finance the rest. So you’ll need to make sure you can acquire the financing for all the required components of the franchise. That includes your ongoing growth! As with anything in business, franchise financing involves a lot of factors that you need to be aware of and understand.

Final Thoughts on Franchise Financing

Franchises are a great way to run your own business. They already have a strong foundation and history, so when you start one you’re not walking down an untrodden and unproven path. Managed properly, a franchise can provide you with a great source of income and a positive career. Above, we’ve only covered a few of the best franchises out there that offer attractive financing programs, but there are many more that offer in-house financing as well. Just like everything else in business, researching the right franchise for you and your goals will be the best step you can take to improve your chances of success. Make sure you do plenty of it before making any final decisions about how you finance your franchise.

FAQs

Does the franchisor offer any help with financing?

Franchisors may provide in-house financing or have a list of approved lenders familiar with working with franchisees. Franchises listed in the SBA Franchise Directory often have more lending options available, as they meet the SBA's criteria, making it easier to secure financing than those without.

How can I get a franchise loan with bad credit?

If you have bad credit, one of the best options for securing a franchise loan is the SBA's Microloan Program. Loan amounts typically range around $13,000 but can go up to $50,000. The program is administered by nonprofit, community-based organizations across the country, and the maximum repayment term for these loans is six years.

Can a franchise make you a millionaire?

Becoming a millionaire through a franchise isn’t just about choosing a strong brand; it’s about successfully expanding into a multi-unit operation. The good news is that anyone can achieve this if they’re willing to gain the right knowledge and put in the effort to grow.

Is owning a franchise worth it?

Deciding whether owning a franchise is "worth it" depends on your situation and thorough research. While franchising has advantages and challenges, it can be a great option compared to starting a business from scratch, but it's important to weigh the pros and cons before diving in.

What is 1 benefit of a franchise?

One of the most significant benefits of franchising is the built-in brand recognition. Building a well-known brand from scratch takes time, but with a franchise, you inherit an established name that customers already know and trust. This instant brand awareness gives you a ready-made customer base, making it easier to attract business from day one.

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