Investors, listen up as ET brings to you an easy guide that will aid you on the various funding options for franchisees.
In the present scenario, many companies have taken the franchisee route for expansion. Different franchisees with variable investment alternatives are available ranging from Rs. 5 lacs to above Rs. 5 crores. It is imperative for companies offering franchisees to potential investors to guide them and understand on various start-up funding alternatives available for franchisees. Here are a few possible alternatives:
TERM LOAN FROM BANKS
Banks offer term loans to various entrepreneurs. These term loans can be utilized for buying commercial properties, machineries , building/construction, furniture and fixtures, equipment, etc. Banks generally fund 50-75 % of total capital investment . All assets bought are taken as security by bankers. It may be possible that banks may ask for additional security , in the form of residential property of entrepreneur, who is setting up the franchisee. Continue reading.