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Franquicias.es explains the keys to finance a franchise

Franquicias.es explains the keys to finance a franchise

Published in Comunicae.es , 02 - February , 2018 abogados franquicias Overview franchises

The portal Franquicias.es explains how to obtain the necessary financing to cover the costs of undertaking franchising
Choosing the ideal franchise may be the first step, but it is certainly one of the easiest. Finding the best way to finance the opening and maintenance of the franchise is what gives future franchisees more headaches. Then, in Franquicias.es explain how to get the necessary capital to cover these costs.
How much money will be needed?
Before you can decide how the franchise will be financed, you must understand how much money will be needed.
"Most franchises offer financing opportunities, but that does not mean they do not request an initial investment, this is an investment that changes drastically depending on the industry and the specific franchise that you want to build," they explain.
Most of the minimum costs to start a franchise range between € 25,000 and € 100,000 of start-up capital. Even so, in some cases, you can pay as little as € 10,000 or as much as € 300,000 to start with a franchise. It really depends on the franchise you choose.
"Most franchisors also recommend having a minimum amount of cash available for supplies, marketing costs, and administrative costs - for example, if you are starting a franchise in the early childhood education industry, you will need school and study materials, as well as Having these costs clear and planned is key when planning the financing of a franchise, "they continue.

If you have savings, everything is much simpler
Many future franchisees use their personal savings to pay the initial opening cost required by the franchise. Because of this, convincing the family to set up a franchise is not always easy.
"By focusing on the benefits, like having a proven model to start your new business quickly, you can convince them that opening your franchise is a smart investment," they advise on Franquicias.es.
Setting up a business plan is essential
Once you have discovered the amount of money that will be needed and you have decided how much to spend with personal savings, the next step is to finance the rest of the costs of the franchise. To do this, you will need a business plan. In a business plan it is important to include as many details as possible, such as sales projections, cost analysis and payroll expenses, among others. The more information that is included in this business plan, the more likely it is that a funding request will be approved.
The franchises themselves offer financing options
Most franchisees seek financing for the franchise first. There is no common formula on which these loans are offered. Some are simple, with only interest and without capital. Others offer the first years without financing fees.
"You may also be able to finance equipment through your franchisor, talk to the franchise to know your options, it may be better to review them completely instead of going to the bank to try to get a loan for small businesses," they conclude.

Franquicias.es explica las claves para financiar una franquicia

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