Starting a franchise comes with many costs: franchise fees and royalty fees can add up to exorbitant rates.
Because of these rates, those with less money may feel left out in the cold, wondering how to start a franchise with no money. Because they have no investment money, they stop looking for opportunities. If this is you, fear not. You have options.
Even if you don’t have any cash, you can learn how to buy a franchise. Many franchises offer no-cost options as well as financing plans that may suit your requirements. In this article, we’ll take you through all the options and show you the path to becoming a business owner!
No-Cost Franchise Options
Typically, a franchisee pays a lot for a franchise. However, there are a few options to get a franchise without money.
- Zero cost franchises
- Government-backed funding
- Bank loans
- Business investors
- Friends and family
Whatever you choose, it’s important to be fully informed. We’ll break down each option below and explain how to finance a franchise with no money.
Before you look for financing, consider a zero-cost franchise. Many avoid these opportunities fearing scams or massive monthly payments, but trustworthy franchises are out there. If you have the time and patience, explore zero-cost options on a trusted franchise website.
If you find one that looks too good to be true, it probably is! Make sure you request all the information and read all the fine print before jumping into a contract that won’t work for you. Many zero-cost options are hard work and require you to do a lot of your own marketing and work until you can employ anyone.
However, there are decent zero-cost options on the market. Don’t write them off too quickly.
The UK government offers financial support for those who want to start their own businesses. To receive funding, you must pass a credit check and show all the relevant paperwork. If successful, you might receive backing.
The upside: you’ll receive additional support as well as access to a business advisor and mentor. . The downside: this type of funding isn’t easy to secure.
Still, it’s worth a shot. Using the government portal, you can check your eligibility for support and put in an application for consideration.
Many banks have good working relationships with franchisors, and you may be able to benefit.
Banks tend to prefer to help people with capital but don’t let this put you off. If you have a good credit rating with minimal debts and financial pressures, they’ll likelyconsider helping you out.
If you are a homeowner, the bank that holds your mortgage may be willing to lend you the fees you need against your current property.
Along with any sensible financial advice, we strongly urge you to consider all methods of finance before using your home as an asset. No franchises offer guaranteed success and losing your home would be a devastating blow.
Friends and Family
If you’re unable or unwilling to borrow from the bank or government, consider asking friends and family for their financial support. By spreading the cost, you reduce the risk to yourself but increase for your loved ones.
If you do get help from family, be honest about the franchise and any potential issues and successes that may arise. Most people are risk-averse, so it’s vital that you eliminate any surprises.
If they’re still interested, great! You now have reliable, honest support.
If you’re keen to get started and happy to share your ongoing profits, you could always find a ‘silent investor.’ These investors allow you to run the franchise while taking a portion of the profits.
Many business-savvy investors will happily invest in your franchise if they see the potential for growth. You’ll need to agree on terms and percentages, of course, but at least your loved one’s life savings won’t be on the line.
A business investor will expect to see a profit turnaround and will require ongoing updates and figures to prove their investment is a good one. The risk– if your investor doesn’t see the expected profit, they can pull out at any time.
No-Cost Franchises in a Nutshell
We hope we have answered how to buy a franchise with no money. There are many cash-free ways to acquire your own franchise; financial support, bank lending, and zero-cost franchises.
Remember, there’s no use in locking onto the first no-cost franchise you find. Make sure to find a reliable franchise you trust to turn a profit before signing a franchise agreement. t.
If you’re looking to find a franchise, Peruse Franchise Local. We’ve gathered the best franchises across various industry options, from Automotive to Home Care – and offer several low-cost franchises.
If you’re out of money, don’t let your dreams go. Keep your options in mind and start working toward your goals. Whatever you choose, we wish you luck in making a profit via your new business.