Franchise businesses can be a great choice for people looking to own and operate their first business.
Owning a franchise business has a number of advantages including:
- Brand Presence – one of the biggest challenges for new business owners is positioning your business to stand-out from the competition. By joining an existing franchise business, you benefit from the franchisor’s existing brand image and reputation.
- Training – Franchisors generally provide initial and ongoing training, covering topics such as operational management, marketing and business planning
- Ongoing Support – head office often provides support for functions such as finance, marketing and supplier negotiations
- Purchasing Power – Franchisors can leverage the group’s buying power and negotiate discounted rates from key suppliers and service providers
When it comes to securing competitive finance for your business, each bank has a list of franchise systems that they recognise and are comfortable lending to. The reason a bank may be comfortable with one franchise system over another varies, but often has more to do with their existing book of loans, than to any risks associated with the particular franchise system.
It is important to have a good understanding of which lenders will be more responsive to your particular circumstances and franchise selection. The team at Green Finance Group have been working with franchise business owners for over 20 years and have helped many new business owners secure finance for their purchase, even when they have been knocked-back by their own bank!