Options to consider when starting a franchise:
1. 401(k) Rollovers for Business Startups (ROBS): This program is easy to qualify. You don’t need to risk your home as collateral and no minimum credit score. There are no tax penalties and no monthly payments or interest when using your retirement funds to start a franchise. If you have at least $50,000 in retirement funds then you can use the ROBS program to fund your franchise fee and/or business start-up costs.
2. SBA Loans: The Small Business Administration offers loans specifically for franchise businesses. These loans often have favorable terms, lower interest rates, and no large balloon payments.
3. Bank Loans: Traditional personal or business bank loans are common options. They often require a solid credit history with or without collateral. This option is best if you are looking for quick funding and lower interest rates.
4. Personal Resources: Using personal savings, retirement funds, or home equity can be a way to fund your franchise. Every option comes with its own set of advantages and disadvantages. It’s crucial to assess which one fits your financial situation and business objectives the best.
