We have found the links below to be helpful as you take the steps to become a franchise owner.

Financing a new franchise will be a process you will want to consider carefully as their are many opportunities available to you.  As you do your exploration you will find these websites helpful:

• Creating a business plan is always helpful.  If you are looking to obtain financing either from a lender or a private party, a business plan is essential in providing the investor with the insight needed to determine the merits of your loan request.  I personally reviewed numerous links through the Small Business Administration.  Interestingly, they referred me to an interactive tool provided by Canadian Business Services for Entrepreneurs.  found the following business
  plan tool to be the most helpful to me.

Financial Assistance

• Many individuals who have gained significant equity in their home have obtained a second mortgage or refinanced their home to make the equity available to them to invest in a franchise opportunity. We suggest that you may want to contact your current lender.

• A local bank that offers SBA backed loans is often the best source of financing. Those franchises registered with the SBA shortens the time needed to obtain financing approval for starting a new business.  You can check to see if the franchise you are considering is on the registry by going to www.franchiseregistry.com/Registry/

• Also, many franchisors have lenders that they work with as well.  One resource that comes highly recommended is the Business Resource Store. 

• Another option is to look for individual, private investors.  Check out these websites for additional information:
  
  www.fynanz.com   and   www.prosper.com

• Either a 401(a) pension, profit sharing; a 401(k); a 403(b); a 457, or other qualified retirement plans; IRA; and rollover IRA money may be used to fund your own franchise; a business start-up or a business property. You are advised to talk with your CPA or Self-Directed IRA administrator before making your investment.  BeneTrends is a company that specializes in leveraging retirement plans for financing or expanding a business.

• A general lender that is available and we recommend for those who do not have a relationship with a local lender that provides business loans is the The Business Resource Store our contact is Neeta Baley

Contact:

Name: Neeta Baley / Business Consultant

Phone: 800-221-9391 ext: 15

Fax: 877-729-9813

E-mail: neetabaley@businessresourcestore.com

• If you have substantial collateral or have established another successful business. We have had great success in referring people to Alyson Drago of Community Bank

• Since it was re-initiated in 2003, VetFran, formally known as the Veterans Transition Franchise Initiative, has enabled more than 400 former military servicemen and women to acquire a franchised small business. It is because the community of franchising wishes to honor those who have so bravely served our country that a special program called VetFran was created. With the cooperation of the U.S. Department of Veterans Affairs, the Veterans Corporation, and the U.S. Small Business Administration, and with outreach initiatives to our country's military and veteran organizations, the program continues to expand. More than 200 participating member companies have agreed to help qualified veterans acquire franchise businesses by providing financial incentives not otherwise available to other franchise investors. Veterans will get the "best deal" from these companies.

• Here are some other resources for obtaining funding to purchase a Franchise:

  • Diamond Financial Services

  • Lincoln Financial Group       

• For those who are looking to build credit, improve their credit rating and/or explore other financing resources, I suggest you check out this website, Business Credit Co-Op.  I do not have any personal experience with their services as I found this website during my web surfing.  If you have any experience with their services, please send me your comments.

Assistance for Review of Franchise Agreement

• A fee based website that provides research data on most franchisors is www.frandata.com

• As you due your due-diligence in evaluating a  franchise opportunity, you are strongly encouraged to talk with your CPA as well as an attorney. 

• An attorney that specializes in reviewing Franchise Agreements is most helpful in being able to evaluate the terms of the agreement.
   

  • A franchise law attorney that has been of help to many of our potential franchisees is Michael J. Katz, Esq. Corporon, Eyler & Katz, LLC, 13710 E. Rice Place,Aurora, Colorado 80015 Phone: 303-790-4104, 877-249-5297 and there website is www.businesslawyer.com
     
  • The Martindale website is a good source directory for finding lawyers with various specialties.  You may want to do an advanced search and enter "Franchise" in the "specific area of practice" field. 
     
  • Remember it is rare to find a franchisor willing to negotiate the agreement.  I suggest that you read the online document: Questions to ask a Franchisor and Why are Franchise Agreements Non-Negotiable. 
     
  • Caution: The agreement review is for the purposes of determining if the terms as stated are acceptable to you.  If you take the agreement to an attorney who is not familiar with Franchise Agreement, the attorney will be inclined to want to edit the agreement, at your expense, only to find that the terms are non-negotiable.

Convenient links for purchasing these books from Amazon.com are provided here for your convenience.

• Achieving Wealth Through Franchising – Robert T. Justis & William Slater Vincent
• Franchise Bible – Erwin J. Keup
• Franchising 101 – Assn. Of Small Business Development Centers
• How to Buy a Franchise – James A. Meaney
• Tips & Traps When Buying a Franchise – Mary Tomzack
• Franchising for Dummies - Michael Seid & Dave Thomas

You may also find these websites helpful:

• For additional information, you are invited to review the International Franchising Association Educational Foundation's Introduction to Franchising

• The Federal Trade Commission has several reference documents you may find helpful.   It is suggested that you review the Guide to the FTC Franchise Rule Table of Contents as it is the reference document used by franchises to complete the disclosure documents that will be sent to you in compliance with the FTC rules and regulations.

• Another useful sight for financing and coaching is Score Counselor to American Small Business.  Their website will also provide other useful links as well as a connection to your most local SCORE location.

• Welcome Business USA is a website I discovered during my web surfing.  I do not have experience with this website.  If you use their resources, let me know if you found the site useful and if you would recommend it to others.