How Do You Finance a Franchise?

Some franchises offer in-house financing, an easy solution for cash flow woes. But it’s worth taking a close look to make sure it’s the right choice for you.

- by CLARISSA BUCH ZILBERMAN

If you’ve decided to embark on the journey of becoming a franchisee, the start is often the bumpiest part. First there’s all the research. Then, if you're doing it right, there are the countless interviews with franchisors and existing franchisees. Once you've settled on a brand, there’s the process of submitting an application and reviewing the Franchise Disclosure Document (FDD).

And finally, once you've gotten through all that, you must confront what is often the most daunting challenge-securing the financing needed to buy a franchise. After all, initial and ongoing capital needs can add up quickly.