Starting a new company can be not only incredibly challenging and risky, but also very expensive. That’s why many people choose to invest in a franchise instead. By investing in a franchise, you’ll be putting your money at less risk.
What if you want to invest in an Experimac franchise, but you don’t have the money it takes? Fortunately, it may be easier to obtain the money you need to invest in a franchise than it is to find the funding necessary to start a business from scratch.
The Costs of Investing in an Experimac Franchise
There are a number of factors that go into the cost of establishing an Experimac franchise. It’s important to know how much money you can expect to invest even if you don’t have the money to do so. Typically, buyers should be prepared to invest between $136,000 and $277,000 to launch an Experimac franchise. This cost covers the following:
- The franchise fee, which is $49,000
- The initial supplies needed to run the business
- The payroll costs
- The real estate
The final cost will vary depending on factors such as the location of your store, the size of your store, the number of employees you hire and, last but not least, the costs of the equipment and supplies you have to purchase.
How to Get the Money to Invest in an Experimac Franchise
If you don’t have the money to cover the costs of opening an Experimac franchise, don’t give up yet. Most Experimac franchise owners didn’t have $136,000 dollars lying around. They needed assistance. Fortunately, there are a number of ways to obtain financing to become a franchise owner. The following are some of the common ways to obtain financing to buy an Experimac franchise:
- Franchisor Financing Assistance: Most franchises offer some kind of debt financing and will be willing to back either all or part of a loan. Some franchisors will even help you with leasing the equipment that you’ll need—which is often a significant portion of the startup costs. Depending on the franchisor, you may have options for your loan terms and repayment schedule. United Franchise Group doesn’t offer financing options directly, but is able to recommend a third party that could help you finance your franchise.
- Bank Loans: If you have good credit and collateral (such as a house), then you could apply for a traditional loan from your bank or from a credit union. Lenders are more likely to approve a loan application for franchise financing that for a new business because they know that there’s less risk involved with starting a business that’s part of an established brand. This makes qualifying for a loan for a franchise easier than qualifying for a loan for your own personal business.
- SBA Loans: If you don’t have acceptable collateral or aren’t able to make a sufficient down payment, you may be able to get a loan through the Small Business Administration. Small Business Association loans are made by banks, but they are guaranteed by the Small Business Administration, which means you may be able to obtain more favorable terms, like a longer repayment period or lower interest rates.
Invest in an Experimac Franchise
If you are interested in investing in an Experimac franchise but don’t have the money to cover the initial costs, you may be able to obtain funds in other ways. For financing information, contact us at Experimac today.