Question: I’d like to buy a franchise but have limited cash for the franchise fee and working capital. Is help available for me?
Answer: A service franchise would be a good choice to reduce the upfront cash needed. Service franchises are a fast growing sector of franchising. The initial franchise fee and start up working capital are lower and the profit margin is better than for franchises like fast food. Often a service franchise can be a home based business greatly reducing fixed cost compared to leasing space for a store front or shop. Typical start up cost for a service franchise is under $50,000.
A recent Wall Street Journal article reports that due to the recent recession many franchisors are providing new franchisees help with the initial franchise fee and working capital.
Previously franchisors wanted the franchise fee paid upfront in a lump sum. Now many franchisors are willing to finance the fee themselves. Carry on reading this post.
