In the current market environment, a profitable business built on a proven business model would be less risky to both the business owner and its lender, compared to highly speculative property investment or any small, unsupported business.
Many people have achieved their dream of a good quality self-employment by becoming franchisees.
Buying a franchise involves two types of costs:
(1) Initial Franchise Licensing fee, which includes franchise brand name and an established business system, and the ongoing franchise fees
(2) Working capital for overheads such as rent, staff wages, stock, electricity, water and equipment
Banks generally look more favourably on franchise businesses than non-franchise ones due to set franchise management system, availability of franchisor’s support and comparatively better chances of success and growth. More.
