IFA Forums / Franchise Finance Forum / Franchise Finance Forum

Looking For Options To Fund Franchisees

AthleticNation — Thu, 08 Mar 2007 15:56:51 GMT

Need more resources for financing options for franchisee prospects. From easy to tough to fund prospects. If anyone has information or can direct me to these sources please call 858-431-9179 or email me at grantg@athleticnation.com - Thanks Grant Gould

Business plan software

xenon — Fri, 29 Jan 2010 00:03:05 GMT

Obviously, to raise capital for any business opportunity, one must have a business plan. I have never actually put one together but now is the time to do so and I was wondering if anybody out there can recommend a good software package? Any suggestions would be greatly appreciated. THANKS

Franchise Fees, royalties and commissions

PB — Mon, 08 Feb 2010 12:44:28 GMT

I am reviewing options to the current franchisor/franchisee financial relationship of our system. Ours has 3 main elements, a royalty (5% of all sales), a marketing fee (2 1/2 % of all sales) and commissions on each sale the franchisor places in the local market (varies 18% - 35%).
I'm hoping to learn other methods that are being used out there in the world of franchises.

Thanks for any help,

PB

Franchise ROI

jwag08 — Wed, 30 Jan 2008 00:16:53 GMT

I am just doing research before I plunge into purchasing a franchise. I would like to know what is a good average ROI after purchasing a franchise and what length of time should I expect to make a profit before I throw in the towel? Can one be financially successful doing this, I am sure there are a lot of variables. I currently make $65,000/year. Just curious if the investment and profit will be worth the salary I am making now. I am experiencing career burnout and need a new direction.

I am considering returning to college OR starting a business franchise. (I am more passionate about a franchise because I want to be my own boss. )

Thanks for your feedback.

Jill W.

Franchise valuation (aka exit strategy)

cmcq — Tue, 08 May 2007 17:12:59 GMT

I'm considering buying a franchise business and as part of the evaluation process, I want to understand how the business will be valued if/when I choose to sell it. I worked for a small services business that was sold by the owners after about 15 successful years of operation. Their one regret from that business was that they didn't have an exit strategy as part of their business plan, and didn't know the typical valuation of companies in their industry. Said another way, they wished they what prospective purchasers would look for earlier in their ownership (e.g. purchasers valued longer term contracts over shorter even if the shorter were higher margin, more prime contract work instead of work as a subcontractor, etc.) and how businesses in that industry were valued (x times revenue, x times EBITDA, etc).

Are there resources I can turn to who can help me understand the key metrics used in evaluating the industry I'm considering and can tell me what the value of businesses in this industry - are they selling for 50% of revenue or 3 times ebidtda or ???

Thanks

Charlie

Web Designing Franchise Available

talmir.ali — Mon, 18 May 2009 15:00:29 GMT

Business Opportunity-Web designing Franchise

A few quick questions...
• Would you like to be your own boss?
• Do you want to run your own business?
• Do you want to achieve financial freedom operating in an industry continually on the rise?
If you answered yes to the above, keep reading...
• Imagine web design made easy
• Imagine operating your very own web design business without spending years learning all the technical jargon.
• With us you can!
• We have developed easy to use software which allows you to create fantastic looking websites in no time at all.
• No technical knowledge required – it is that easy!!
We have successful licensees in countries all over the world following our simple, yet highly effective business model to better their own lives and achieve financial freedom.

By using our services you can design websites quickly, increase your profitability and gain fantastic market share due to the prices and quality of websites you produce.

With the assistance you can literally build a website in a few hours, whilst still charging the prices of traditional web designers. Think about this for a second, because you are designing websites quickly, your profitability will go through the roof. Our services are so quick

It allows you to position your prices where you can undercut all the competition with price, but not quality. We have identified a massive gap in the market; there are too many businesses, sports clubs, and community groups etc that don't have a website.

This opportunity costs 10,000 USD*, to find out more please mail to the following address mark.willson@zkam.org
*financing opportunities available

job description

talmir.ali — Mon, 18 May 2009 14:58:23 GMT

ONLINE TUTORING FRANCHISE
Start Your Own Business!!!

Get ready for the ride of your life!!!

The best online business on the planet!!! Earn unlimited income, simple and easy!!!
Low start up fees and low monthly overhead.
No inventory carrying costs.
Products and services that appeal to the masses with stable, growing and long-term demand.
A business vehicle that produces a very lucrative income with the potential to be in positive cash flow in 2-8 weeks.
If you are ready to operate your own business, boost your income and improve the quality of your lifestyle, you owe it to yourself to look closely at our business and follow up by contacting us for a brief interview.

This opportunity costs 10,000 USD*, to find out more please mail to the following address mark.willson@zkam.org

* Financing opportunities available

401k to fund franchise??

JJ33 — Wed, 11 Apr 2007 11:28:34 GMT

There is a section on the IFA website in the drop down menu that mentions IRS provisions that allow the funding of a franchise via 401k. However, the segment doesn't mention where to get this information. Where should I go to find out more? Thanks.

SBA 7(a) Loan program

raleigh — Mon, 23 Feb 2009 09:20:19 GMT

What is the minimum down for such a loan? I have heard conflicting percentages. I've heard 20% and 10%.

How soon and how much will the stimulus package impact SBA loans?

Where do you purchase YOUR marketing materials

Ryan — Fri, 19 Dec 2008 14:06:51 GMT

How many of you have cut back on your marketing materials for the slow economy? How many of you have bumped up your marketing efforts? Who do you purchase from and why?... Would you switch to another competitor if the prices were cheaper? If the Designs were better?

looking for funds to fund my franchise

slmoses — Tue, 02 Dec 2008 06:56:10 GMT

I'm looking for ways to fund my franchise. I have all the documents. Help please.

I have an Enterprise Solutions Business which I would like to expand with Franchisee

Ashish Sharma — Fri, 03 Oct 2008 04:28:11 GMT

I head a company which integrates Enterprise Solutions in Infotech, Communications, Audio Visual Integration and Electronic Security Systems.

We purchase equipment from manufacturers and integrate on site after devising right solutions for the client.

We also have some dealer channel across state of Maharashtra i iNdia, I would like to strengthen this channel by standardising the processes, products and services and ensure financial expansion.

Can someone help me on this?

First Time - SBA Struggle

aceeight — Fri, 22 Feb 2008 11:13:57 GMT

My partner and I are trying to start our first franchise and have struggled with getting a loan. We both have great credit scores (700+) and have a 30% cash injection available. The loan amount needed is under 400k. Also, being located in Texas, we cannot use a home as collateral due to homestead laws.

Banks have said they need more collateral or cosigners on the loan. The franchise is up and coming and should have a C grade. What is the deal though, why can't we get approved? We can't determine if this is due to our personal finances or the franchisor?

Any advice would be greatly appreciated.

Franchise Fee and Lease Agreement

bernadette — Thu, 12 Jul 2007 11:29:46 GMT

We bought a franchise for a food store last month. Because the mall is still under construction and the target to open in mid 2008. My question is the franchise fee suppose to be paid without a lease agreement? The franchise fee could have been sitting in the bank earning interest and as soon as we get a lease agreement then we pay. The company that we are dealing with at this time said that we need to pay the franchise fee but agreed to addendum the contract that it will be refundable if we dont get approve for the lease. Is this normal? That will be about 1 year my money will be loosing money.Please help me we feel like we made the biggest mistake in franchising..please anyone can you give us an advice.

Build-out / Store Fixture issues

DNIDOUG — Tue, 29 Jan 2008 15:32:04 GMT

Our company has been working with many different Franchises to design, manufacture, and install store fixtures. We are trying to compile a list of the biggest issues for the franchisor and the franchisee related to store fixtures and the entire buil-out process. Please let me know your thoughts.

Thanks,

Doug Stein

Meeting Alert!

Mr. Jason Yusko — Wed, 30 Jul 2008 08:43:57 GMT

Please join us for Franchise Appreciation Day, IFA’s annual public affairs conference, scheduled for September 15-16 at the JW Marriott in Washington, DC. This is your chance to meet with your congressional representatives on Capitol Hill about important issues facing the industry. Members of Congress need to know our views on such issues as Health Care Reform, Card Check Legislation and Immigration Reform.

To help you prepare, IFA staff and other government relations experts will review these key issues in detail during the meeting to help you conduct effective meetings with your Members of Congress.

There is no registration fee to participate in FAD and we will make your Congressional appointments for you. For more information and to register, visit www.franchise.org/fad.aspx

More than 500 franchisors, franchisees and suppliers participated in FAD last year to tell franchising’s story. Don’t you want to be included so that policymakers are aware of what’s important to your business in this critical election year? We’ll see you in September.

Vehicle leasing options - franchisor

open2view — Thu, 09 Aug 2007 12:45:18 GMT

I'd like to create a bundled leasing package (vehicle and upfit equipment) for my new franchisees. Can anyone recommend a few leasing companies that specialize in this area or in working with franchises?

Information on Franchise purchases in Bull Markets vs. Bear Markets (like right now)

L..A. Jones — Mon, 24 Mar 2008 12:58:37 GMT

I'm interested in researching how the economy affects peoples' decisions to buy a franchise. In Bear Markets, do start-ups decrease or increase? What about Bull Markets? Common logic would suggest Bear Markets would decrease, Bull Markets would increase. On the other hand, with large layoffs and lack of opportunities in traditional employment, do Bear Markets actually see an INCREASE in people deciding to purchase franchises?

Does anyone have this info?

Where could one look up this information?

Funding Available For Any Business!

dstorm30 — Sun, 10 Feb 2008 13:25:40 GMT

Fundraiser 1.0 is a program that many For-Profit and Non-Profit business, entrepreneurs, and income seekers are using to raise funding online for various projects. You could raise up to $11 Million in funding online with no loans, no banks, and no commitments. Learn how!

Raise Debt-Free Capital Online - Now!

Franchisor Financial Projections

Mr. Jamie J. Griffin, CFE — Sat, 02 Feb 2008 09:02:01 GMT

Hi,

Admittedly, I am not a financial wiz. I've been trying to conceptualize a franchise financial model that begins with unit level franchisee financials with a strong ROI accounting for startup period sales trends, financing costs, etc and leads me back to system financials accounting for incoming fees and expenses associated with selling, opening and supporting franchisees.

It seems like most franchisors decide what fees to charge (based on what “everybody” charges) and then figure out what kind of support they want to offer given the expected revenue. I’ve looked all over for resources specific to developing a franchisor financial model but have not found anything other then someone in the tanning salon product line selling a comprehensive excel workbook as a template.

My founder would like to adjust our fees and I’d prefer to understand how fee adjustments will affect us financially and what the “right solution” is based on the trends that will develop over time based on this early decisions. Any advice, directions to resources, or constructive feedback folks here have to offer would be much appreciated.

Regards,
Jamie

YOUR MARKETING PARTNER

kcsbpo2007 — Wed, 30 Jan 2008 04:43:25 GMT

Hi,

We can promote your products and services in US, Canada, UK, Europe, Australia or any other country where you are targeting your business expansions. To know about the business models we are proposing, send a mail to aws@kcsbpo.com providing details of your business. We shall revert with a proposal.

Thanks,

Nancy

Business Partner

KCS-BPO

lower operating costs and add value to your business

dperez — Mon, 14 Jan 2008 13:59:29 GMT

Hello all,

My name is David and I work for a company called Dalrada Financial Corporation. Here at Dalrada, our goal is to help business owners cut costs and reduce much of the stress that comes with running a business. Our program combines workers' compensation insurance, payroll processing services, human resources support, and benefits administration and is offered as a package to business owners. In addition, we have a safety and loss control team who are available to all of our clients. We currently process payroll and cover over 40,000 worksite employees. Due to this large buying power, we are able to offer workers' comp rates that are extremely competetive. Should you like further information, please check us out online at www.dalrada.com or contact me directly. It would be my pleasure to prepare no cost, no obligation quotes for anyone interested.

Best regards,

New website offering affordable employment ads and coupon advertising

teensmartchoices — Tue, 04 Dec 2007 12:01:16 GMT

www.teensmartchoices.com is a brand new website to help franchisee owners find affordable employees ages 16-19 do you need holiday workers, part-time workers, or offer internships we are the place to advertise we our nationwide in the USA but we will add your country to our locations when you sign up. We offer franchisee owners an opportunity to place unlimited employment ads for a year on our site for a small fee of $50.00 per store or franchisees can do 6 employment ads and 6 coupon ads for $50.00 a year.

This offer is only avaliable through contacting sandra@teensmartchoices.com or calling 406-250-9651 please ask to speak to Sandra.

If you sign up at the website it is $120.00 a year so if you own a franchise contact the above mentioned email or call for the discount rate.

Franchisee: Disabled Veteran

TaylorCS78 — Fri, 30 Nov 2007 22:00:30 GMT

I am new to the franchise arena as well as to this forum and as a result inexperienced in many regards. I have found a franchise that I am interested in. We have met and everything looks like it is a go at this point. It appears total investment will be in the neighborhood of $500,000 for this opportunity.

Currently I have $200,000....$130,000 of which I am going to put towards the franchise. The remainder of the money I will keep to use as part of my "emergency" funds in the event something unexpected occurs. As for the remaining $370,000 how should I approach this?

Specifically I am interested in the anyone with knowledge on Disabled Veterans. I know the SBA offers great loans for disabled vets but I am looking for more information along the lines of Grants, etc. whether from the fed gov't or the state. This franchise is located in Texas.

Any help would be appreciated.

Thanks!

Chris

Product/Service Pricing?

gonzamat — Thu, 25 Oct 2007 12:48:39 GMT

As an event production company, we typically subcontract products/services, and they're priced differently throughout the country (i.e. DJ in Arizona is priced differently than hiring a DJ in New York).

What is a recommended strategy from the franchisor to franchisee to establish pricing on these types of subcontracted services? In other words, how can we as the franchisor help the franchisee determine costs/pricing for all the known and unknown services they may use as an event planner in subcontracting these types of services in their area?

Thanks!

Finance

Camden Advisory Partners — Sun, 21 Oct 2007 18:44:03 GMT

I suggest you get old materials regarding Meet The Money People. These were conferences where Lenders were introduced to Franchising. These occurerd in the 1980's and many well known Franchisors were involved.

I need help from EVERYONE!!

jaeleigh_army — Mon, 24 Sep 2007 22:37:32 GMT

Hi. My name is Jenna Mitchell and I really need everyone's help here.

I am currently a full-time student at Florida Metropolitan University-Brandon Campus. I am majoring in Business Administration and my final's are coming up. My assignment is to write a proposal to my investor. I have never done anything like this before. I already have all of the information but I was wandering if anyone had any advice or suggestions for me?

I would appreciate all the help that I can get. Thank you so much.

Financing by Franchisor

gonzamat — Fri, 19 Oct 2007 19:38:50 GMT

Beyond recommending to a Franchisee going to the companies that specialize in 401k financing, is it recommended for the franchisor to finance a franchisee? If so, what models exist for this (i.e. payoff in a certain timeframe, what's the interest rate, etc.)?

Return on Investment

Shane T — Mon, 29 Jan 2007 18:54:17 GMT

I have heard that 15% is a good ROI for a franchisee after a salary/draw, based on initial investment value.
This makes sense to me for year one, but I am wondering how you calculate ROI over the first, say, 5 years.
I am assuming most franchises aren't going to give a very strong ROI in year 1, but tempt franchisees with hopes of ROI over the long run, am I correct?
Thanks for your help!

Using your 401K to cash out for new business?

newfuture — Wed, 08 Aug 2007 11:16:31 GMT

Has anyone used the services of Benetrends, Franfund or Guidant? I have been talking to 2 accountants and they are not sure if this is a illegal tax scheme or really a loop hole within the IRS that actually works. I would love to use my 401K to reduce business capital and avoid capital gains/penalites.

Also, since these companies require your business to be set up on C-Corp. Are you business owner's keeping the business in a C and adding it as an LLC or S corp? Does that even make sense?

TIA

franchise fee????

lisa22 — Tue, 07 Aug 2007 21:45:08 GMT

Is it possible to give a territory to a family member and not take the franchise fee???? Is that okay??

Franchise Business Model illustrations / resources

Carrie — Tue, 05 Jun 2007 16:42:38 GMT

Hello-

I just spoke with Bill Burris, Director, Advertising and Marketing for IFA and he suggested that I post my request to you for any advice. I am an associate at a management consulting firm. I have a client in the Financial Services Industry who is thinking about introducing a franchise model to their bank. Does anyone have any good illustrations for a Franchise Business Model? Or any good resources?

Any help is greatly appreciated.

Carrie Glenn

Using free digital signage to increase sales & brand awareness

MichaelMMM — Tue, 10 Apr 2007 22:18:42 GMT

Its a fact:

Companies conducting deployments of digital signage solutions have clearly demonstrated higher brand awareness and sales uplift by targeting relevant information to an audience near the point of purchase.

Cisco News. 15 Dec 06

In a World first Digital Recall is making digital signage software available absolutely free from their website.
Manage a network of screens over the LAN or Internet. Huge benefits.

If you want to know more, just go to the website www.digitalrecall.com.au

Franchise consultants ... advice would be greatfully appreciated ...

LisaH — Sat, 24 Feb 2007 16:41:08 GMT

Hi
I'm in the process of franchising my business.
I'd be really grateful for any words of wisdom / experiences re: franchise consultants ... ie: fixed fee v's % of royalties .... level of support / involvement etc ...
I've just had a meeting with a consultant company who take a fixed initial fee and the a 70 / 30 cut on royalties with a 5 year contract ... so confused!
Do I carry on alone / go with a traditional franchise consultant or a "comission type" consultant .....
Very grateful for any thoughts!
Thanks
Lisa

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