Franchise Financing at Your Terms
The franchising industry is highly competitive and tight lending criteria from banks and traditional lenders have made it even more difficult for small business owners to access quick money. At Merchant Advisors, we understand the intricacy and time constraints small business owners have to face in securing money. Whether you are a multi-unit, a single location seeking expansion or a nationally recognized chain, Merchant Advisors can help.
We are your one-stop-shop for flexible franchise financing options. We strive to help every small business they had difficulty in securing traditional business financing or working capital from their franchisors. Our franchise business loans are specifically designed to expedite your business growth, with cash up to $1 million at competitive rates and affordable terms.
Our Simple Qualification Requirements
Benefits of Franchise Financing
- Multi-units business financing options
- Furniture, fixtures & equipment
- Recapitalizations to free up capital
- Refinance or consolidate your debt
- Existing Unit Purchases
- Property improvement programs
- Required brand updates
- Remodeling and re-imaging
- New location acquisition
- Daily business expenses
Types of Franchise Fees Involved
Opening a new franchise isn’t a piece of cake; there are multiple fees involved. Here is a breakdown of the franchise fees involved:
You pay the initial franchise fee to enter the franchise industry allowing you to use their products and services. You will have access to their promotional material. Initial training fee and cost to access to their hardware and software are covered as well. The procedure and the characteristics of this fee might vary from lender to lender.
Once you have paid the initial fee, your business is up and running at another location, get ready to pay the ongoing fee. It can be an intermittent fee or a percentage of the franchisee’s gross revenue. The ongoing franchise fee can vary from company to company, but on average, it can be around 5 - 6% of the franchise sales volume.
The royalty fee is to cover the cost of running operations and for the service of franchisors. Usually, this fee is some percentage of weekly, and monthly grosses.
Most franchises require participation in a common advertising fund from franchisees. This is usually a fixed contribution, but can also be a percentage of the franchisee’s gross revenue. The cash form this fee will cover the cost of additional contributions, yellow pages and to fulfill other domain requirements.
Franchise Disclosure Document contains all the relevant information about the additional fee.
A transfer fee is imposed if you sell your franchise to another party. Keep all the initial, ongoing and additional fees in mind and compare the cost of applying as an independent franchise operator to the complete cost of a Franchise loan. Select the one that goes well with your business needs and financial resources.
How to Apply for Franchise Financing
In order to apply for franchise financing, just fill our online loan application and you can get the approval decision within 24 hours. We will review your franchise financing application via our automated decision-making process. There is no hassle of lengthy paperwork or financial statements. Plus, we considered all FICO credit scores – meaning you’re still eligible even with a limited credit history.
Our franchise loans are affordable – means the initial cost is minimal, and your payments are predictable, relieving you from the stress and worry of slow sales periods.
Get the business financing solution that’s right for you
How to Improve Your Chances of Getting Franchise Loans
Providing collateral will help develop confidence in the lender. You will be approved for an SBA loan or a bank loan with much more ease if you offer lenders with collateral. For example, the equipment financed through Equipment Financing will itself act as collateral.
If you’re able to provide any personal resources to the lender, it will also help increase your chances of approval. This shows your commitment to your business and highlights your interest in franchise financing.
Franchise Disclosure Document (FDD) gives a detailed overview of franchises. It covers all major aspects such as fee information, franchisee’s rights, and obligation. Read the fine print carefully before applying for Franchise Financing.
It’s is recommended to opt for a franchise keeping its brand value, location and history in mind. Pay a visit to the lender after you have picked a franchise.
Franchise Loans from Merchant Advisors
Merchant Advisors works with franchisees in almost every type of industry from service restaurants, automotive, fitness, to hospitality, and retail industries. Our main goal is to get you the best franchise and business financing solutions, along with our excellent customer support. Our experienced loan specialist will work closely with you throughout the loan process to get you the loan option tailored to your financial and payment needs. Our commitment to lending and serving small business owners is what makes us an accredited lender by the Better Business Bureau (BBB).
Why Merchant Advisors?
Merchant Advisors has helped many successful businesses through affordable franchise loans; you can be the next. Here are some of our benefits of franchise loans to convince you:
- Franchise loans up to $1 million
- 90% of loan approval rates
- Soft cost financing available
- All credit considered
- A+ BBB rating
- Fixed low-monthly payments
- 24-hour franchise loan approval
- The easy application loan process
- Dedicated advisors to franchise brands
- Flexible terms for acquisitions & remodels
- Competitive interest rates
- Master lines for Multiple Store Owners