In Unprecedented Times, There’s Hope in the Franchise Space

In the world of franchising, things are finally starting to turn the corner when it comes to franchise development. It’s no secret that the COVID-19 pandemic wreaked havoc on the business world and left many franchisors and franchisees wondering what to do next. While we’re certainly not out of the woods yet when it comes to the virus, there is some good news: the market is starting to look up, and the franchise industry is as strong as ever. Plus, many new and exciting opportunities have emerged from this crisis in the way of marketing. So, what does this mean for you as part of a franchise development team? Now is the time to capitalize on these plentiful opportunities to stay ahead of the curve and make the most out of this unprecedented and difficult situation.

If you’re part of any marketing team, chances are you saw either a complete or partial halt to your paid marketing efforts in light of the pandemic. As things start to open back up and the world slowly begins to return to a sense of normalcy, you may be wondering what to do next and if people are really seeing now as a time to invest. Well, the good news is that they are! All the uncertainty as of late has many investors looking to make a career shift. For example, perhaps an owner of a food franchise is looking to diversify their investment portfolio with something completely different, such as a home services franchise? Prospective investors are on the hunt for new opportunities, which means this is a great time to start ramping up your paid marketing efforts to reach those hopeful entrepreneurs.

Plus, this is a great time to get ahead of your competitors. Let’s face it, despite things starting to turn around, there are many in the industry that are still unsure and remain hesitant to start advertising again. Now is your chance to put your concept out there and start getting noticed by hopeful entrepreneurs! The next few weeks and months could be the key to reaching your 2020 franchise development goals, and there are plenty of different ways to advertise to strategically engage with prospects. Think outside of the box: digital marketing is definitely a hot ticket item right now, but also consider advertising ways that your concept is different from the others! One great way to onboard new franchisees during this time is to assure them that your concept offers adequate support to help them navigate through this difficult time. If you ramp up your marketing efforts now to reach these prospects and tell them everything they need to know about what makes your concept stand out, you could see a ton of new franchisees in your pipeline in the coming weeks and months. So, what are you waiting for?

While the COVID-19 pandemic has adversely affected nearly every facet of the business world, luckily, there seems to be plenty of hope in the franchise space. Though they may be a bit more hesitant than they would be under ordinary circumstances, franchisee prospects are out there and many of them are ready and waiting to dive into a new investment. With this in mind, now is the time to double down on your paid advertising efforts to help get these prospects in your franchise pipeline. Who knows where things will be a month from now, but one thing is for sure: there’s never been a better time to get ahead of the competition and capitalize on the renewed public interest in franchise investments and business opportunities. And the good news is that you don’t have to go in alone. At Franchise Clique, we’re marketing experts and can put our knowledge of the franchise space to the test to help you reach all of your development goals and generate top-quality leads, guaranteed. Contact us today to learn more about the programs we have available!

Franchise Financing – How to Get It

If you’d like to purchase a franchise, but aren’t sure where to get the financing from, then you will want to read this article. Specifically in this article, we’ll discuss how to raise investment capital, what banks are looking for before they will loan money for a franchise, and alternative resources you can utilize to finance your franchise. After reading this article, your head should be swimming with ideas on how to get franchise financing.

The best way to get financing for your franchise is to have a good credit rating and a solid character. Most franchises will assist someone who they believe can run a business well but lacks the initial startup cash. Oftentimes these franchises have track records for picking successful business owners, so they have networks of investor groups who they can tap into for capital. Sometimes, your best bet for franchise financing is to get help from the franchise itself.

If that isn’t an option, then you need to know how to go about getting a loan. First of all, if you own property, that is your best bet at getting a loan. Otherwise, you might need the help of family and friends to sign on to share the burden by offering assets in exchange. Unless you have had several big loans in the past that you have made good on with your bank, then you’re going to need some assets. Unless your net worth is very substantial, don’t count on getting a simple signature loan.

If your credit is bad but you have a lot of cash on hand, then this works in your favor. My advice to you is to first find a franchisor that banks will be more apt to give money for. Investing in a new franchisor that only has 5 locations is probably not a good way to get financing from banks. If you were to invest in a McDonald’s franchise, I guarantee you’d have banks lining up at your door waiting to give you money. Before planning your business model, you need to take into account the bank’s point of view. They are in the business of giving money that they are 99% sure will be able to pay back the loan. If they have any doubt in their mind that you could go under, they will not give you financing.

Sometimes, if a franchise itself won’t help you with the financing, they will point you to the direction of someone who will. Because franchises want to sell their franchise to make money, they typically create resources that will help you in approaching venture capitalists and other people who are looking to loan money for a better than average return.

In conclusion, your best chance for franchise financing comes either from the franchise itself, the resources they can point you towards, or the loan you can get for the bank. Depending upon your circumstance, if you do it right it shouldn’t be a problem getting a loan from one of these three resources.

The Franchise Business is Alive & Strong

New franchise opportunities are coming to the market regularly and the franchise industry is getting stronger and stronger. Franchise exhibitions are attracting many new exhibitors. Potential franchisees are coming in their droves to look at the many new & old opportunities that are eager to take their cash.

The entrepreneurial spirit is alive and kicking. People from all walks of life and different educational backgrounds are now thinking about going into business. More women are now looking to buy a franchise than ever before. Older people are joining the queue looking for part-time & full-time business opportunities for later life.

The banks and lending institutions are competing strongly to lend money competitively to new franchisees. It has never been a better time to buy a franchise. In some cases, the franchisors are even stepping in to provide guarantees to lenders to enable the franchisee to buy their franchise and set up the business.

Buying a franchise is much safer compared to starting a business on your own. Survey after survey carried out by official franchise organizations and lenders prove that people buying a franchise business are much more likely to still be trading profitably than people who choose to go into business on their own steam.

For those who are considering buying a franchise business, it is imperative that the right questions be asked to the franchisor.

How long has the franchisor been trading?
Are you a member of any approved organization?
What skills are required to operate the business?
How long will it take to recuperate capital invested?
How much turnover will I need to do to breakeven?
Who are your main competitors?
Is the market for your products growing, at a standstill or declining?
Will there be any unexpected fees?
Is there any ongoing training & support?
Which territories are available?
Do I have an exclusive territory?
What assurance do I have that my territory will be protected?
Are there any ongoing fees?
How long is the training?
How many franchisees do they have?
Can I contact all or some of your franchisees?
How many are trading successfully?
How many franchisees have failed in the past?
Why did they fail?
How are disputes handled?
How is marketing done?
What will be my contribution?
What is the procedure in selling the business?
What are the fees involved in selling the franchise?

Bear in mind that a good franchise opportunity will only work if you are prepared for the hard work involved in running a business. It is absolutely vital to find a business that will stimulate you for years to come. Far too many people choose an opportunity primarily based on profitability, rather than choosing the right business for them.

The franchise agreement is the cornerstone of your business and, as such, demands close scrutiny. Legal advice should always be sought to ensure that it is evenly balanced. Some franchise agreements that I have seen are far too one-sided and give more protection to the franchisor than the franchisee.

A final word of caution, even the best franchise will struggle in the wrong territory and marketplace. Always get independent advice from professionals to determine if your ideal franchise opportunity will work in your area.