by Kenbry Capital | Jan 27, 2023 | Franchise Financing
Investing in a franchise business is a great way to build wealth and gain financial freedom. With the right plan, you can start your own franchise business without needing a lot of capital upfront. The ROBs Plan is the perfect solution for entrepreneurs who want to get into franchising but don’t have the resources or know-how. Here’s what you need to know about starting a franchise with the ROBs Plan.
What Is the ROBs Plan?
The ROBs Plan stands for “Retain Ownership But Sell (ROBs)” and it is an innovative way of starting and managing a franchise business without having to invest large amounts of capital upfront. Instead, you will retain ownership of your company but sell off pieces of your business over time in order to generate revenue that can be used for reinvestment or expansion. This will allow you to grow your business without having to take on debt or other forms of financing.
How Does It Work?
The process begins with you selecting a suitable franchise model and securing legal advice from experienced lawyers and accountants in order to ensure that all paperwork is completed correctly. Once this is done, you will need to create detailed plans that outline how the franchise will operate, including marketing strategies, pricing structures, staff requirements, and more. Once these plans are set up, you can start selling parts of your business in exchange for equity or cash payments which will be used as investments in areas such as marketing, equipment purchases, or staff salaries. This process should be repeated regularly until you have reached your desired level of growth.
Advantages Of The ROBs Plan
The major advantage of using the ROBs Plan when starting a franchise is its flexibility; it allows entrepreneurs to start their own businesses without having to take on large amounts of debt or risk their personal assets if things don’t go according to plan. Additionally, as owners are able to keep control over their businesses throughout the entire process, they are able to make decisions regarding how they want their franchisees to run without having too much external influence from investors or lenders. Finally, by selling pieces of their businesses over time instead of taking out loans from banks or venture capitalists, entrepreneurs can minimize risk while still being able to grow their companies at an accelerated rate compared with traditional methods such as bootstrapping or angel investing.
Starting a new business can be intimidating but with the right plan, it doesn’t have to be complicated! The ROBs Plan offers entrepreneurs an innovative way of getting into franchising while minimizing risk and allowing them to retain full control over every aspect of their operations. If you’re looking for an easier way into franchising then give the ROBs Plan a try – it could help you realize your dreams faster than ever before! With careful planning and implementation on your part – there’s no telling how far your business could go!
There are numerous benefits to opening a franchise business, such as having an existing marketing team and brand recognition. However, there are still financial hurdles to making your dream of operating a franchise restaurant or store a reality. The professionals at Kenbry Capital can help you become successful through our franchise financing program.
by Kenbry Capital | Jan 20, 2023 | Franchise Financing
Franchising is a great way to start a business. Not only can it provide you with the necessary guidance and resources to be successful, but it also offers security in knowing that you’re part of a larger, established company. But how do you fund your franchise? Read on to find out more about the different options available for financing your franchise.
Self-Funding
If you have sufficient funds, you may choose to self-fund your franchise. This option is great if you already have enough money saved up or can access capital from other sources such as investments, retirement accounts, family and friends, etc. However, self-funding does have its downsides including increased risk due to a lack of external support and a potential lack of liquidity.
Small Business Loans
Small business loans are one of the most popular ways to finance a franchise. These loans typically come from banks or other lending institutions and can be used for purchasing inventory, hiring employees, etc. Small business loans are usually offered at competitive rates and come with flexible repayment terms. However, they typically require collateral such as real estate or equipment and may take some time to process depending on the lender’s application requirements.
Franchise Financing
Franchise financing is another popular option for funding a franchise. Many franchisors offer financing programs that make it easier for new owners to purchase a franchise without having to come up with large amounts of capital. These programs often include low-interest rates and flexible repayment terms that make them attractive alternatives to traditional small business loans. Additionally, many franchisors will provide additional support services such as training programs and marketing assistance as part of their financing packages.
Starting your own business can be an exciting venture but also a daunting one if you don’t know where to begin when it comes to financing your new endeavor. The good news is there are several options available for funding your franchise including self-funding, small business loans, and franchise financing programs offered by many franchisors themselves. Whichever option you choose for funding your franchise will ultimately depend on your financial situation as well as the specific requirements set forth by the franchisor or lender involved in the process. With this guide in hand, however, you should now have all the information needed to decide how best to move forward with starting up your franchise!
The professionals at Kenbry Capital can help you become successful through our franchise financing program. Contact us today!
by Kenbry Capital | Jan 13, 2023 | Franchise Financing
Owning a business can be incredibly rewarding, but it can also be difficult to get the funding you need to get off the ground. Thankfully, there are various financing options available to franchise owners who want to open a business or expand their existing one. In this blog post, we’ll take a look at 5 of the best franchise financing options and how they can help you achieve your goals.
- SBA Loans – The Small Business Administration (SBA) offers loans up to $5 million that the government guarantees. These loans are typically used for startup costs, working capital, and equipment purchases. The credit requirements are fairly strict, but if you meet them you can enjoy lower interest rates than most other financing options.
- Merchant Cash Advances – Merchant cash advances provide businesses with quick access to funds in exchange for a percentage of future credit card sales. This is an ideal option for businesses that have high credit card usage and need short-term funding quickly.
- Equipment Financing – If you need money to purchase equipment for your franchise, equipment financing is a great option. It allows you to finance up to 100% of the equipment cost and spread out payments over time with low-interest rates.
- Bank Loans – Banks offer loans specifically designed for franchises which may include lower interest rates than other types of financing as well as more flexible repayment terms. However, bank loans typically require good credit and collateral so they may not be an option for everyone.
- Crowdfunding – Crowdfunding is becoming increasingly popular among entrepreneurs looking for startup capital without taking on debt or giving away equity in their businesses. You can use crowdfunding platforms like Kickstarter or Indiegogo to connect with potential investors who could provide the necessary funds in exchange for rewards or recognition from your business once it succeeds.
There are many different types of franchise financing available these days which makes it easier than ever before to start up a new business or grow an existing one Finding the right type of financing is key so make sure you do your research before deciding which route is right for you With so many options available its important that you find one that fits your needs and budget so that you can focus on running a successful franchise.
There are numerous benefits to opening a franchise business, such as having an existing marketing team and brand recognition. However, there are still financial hurdles to making your dream of operating a franchise restaurant or store a reality. The professionals at Kenbry Capital can help you become successful through our franchise financing program.
by Kenbry Capital | Jan 6, 2023 | Franchise Financing
Starting a business is an exciting yet daunting prospect. You have to consider all the costs associated with launching and running a business, including franchise fees, equipment, supplies, wages, and more. Fortunately, there are many different financing options available to help you kickstart your franchise business. Let’s take a look at some of the best loan options available for franchising businesses.
SBA Loans
The Small Business Administration (SBA) offers loans specifically designed for small businesses including franchises. The SBA doesn’t actually lend money itself; instead they offer guarantee programs that make it easier for banks and other lenders to provide financing to small businesses. The most popular SBA loan program is the 7(a) loan which can be used for almost any purpose related to starting or expanding a business. This includes buying land or buildings, purchasing inventory and equipment, or even refinancing existing debt. The maximum amount you can borrow under this program is $5 million with repayment terms up to 25 years depending on how the money will be used and what type of collateral you can provide.
Franchise-Specific Loans
There are also several lenders that specialize in providing financing specifically for franchises. These loans are tailored to meet the needs of franchisees and come with features such as lower interest rates and longer repayment terms than traditional bank loans. Additionally, these lenders may offer additional support services such as marketing advice or assistance in finding qualified employees for your franchise location.
Equipment Financing
If you need funding to purchase equipment for your franchise business, then equipment financing may be an option worth considering. With this type of loan, you can borrow money from a lender to purchase specific items such as machinery or computers necessary for running your business without having to pay in full upfront costs out of pocket. Depending on the lender you choose, repayment terms may range from 6 months up to 5 years with interest rates ranging from 8% – 30%.
Unsecured Business Loan
Unsecured business loans are another great option if you need funding quickly but don’t have any form of collateral such as property or inventory that you can use as security against a loan. Unsecured loans usually come with higher interest rates than secured loans but they are much easier (and faster) to obtain because there is no need for extensive paperwork or lengthy approval processes associated with collateral arrangements. Repayment terms range from 3-7 years depending on the lender and amount borrowed.
Franchising businesses have unique needs when compared to traditional startup companies so it is important that you find a loan option that meets those needs while still being affordable and easy to manage over time. Fortunately, there are many different types of loans available specifically designed for franchises as well as other more general financing options that may be suitable for your needs. By doing research into each one and understanding their advantages and disadvantages before applying for a loan, you can ensure that you choose the best option possible for funding your franchise business dreams!
