Franchise funding strategies for sustained success | Global Franchise
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Tuesday 16th August, 2022

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Franchise funding strategies for sustained success

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Franchise funding strategies for sustained success

Do you have the funding strategy for 2021 and beyond?

Do you have the funding strategy for 2021 and beyond?

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No two businesses are exactly alike. FranFund designs flexible funding strategies to meet the unique needs of each business and each entrepreneur. FranFund is involved both in obtaining funding for the business’s opening and as the business is ready to expand to additional locations.

During this process, the FranFund team determines a partner’s goals and needs, then designs a funding solution to accomplish those goals. The funding solution could be as simple as facilitating a ROBS (Rollover for Business Startups) transaction, or multi-layered to plan for rapid expansion.

The process does not stop at designing a businesses’ funding solution. FranFund deconstructs the loan acquisition process to make it easy for the borrower to provide the right information. FranFund creates a complete loan package, along with an executive summary that may be presented to multiple potential lenders.

This process ensures that the client obtains the best rates and terms. Once the loan is approved and in process, the FranFund support team stays in constant communication with the lender and borrower to keep the process moving smoothly. Whether you’re planning to start a business or wanting to expand an existing one, let FranFund help you design and pick the best funding solution for you.

FUNDING VIA SBA LOANS

Small Business Administration (SBA) loans are an attractive form of startup business loans for many franchise entrepreneurs. Under the SBA process, a portion of the loan is guaranteed by the Small Business Administration, which is a United States government agency that provides support for small businesses and small business owners. SBA loans are serviced through private lenders and have generous term lengths. For qualified candidates, SBA loans are a great option because the SBA incentivizes lenders to provide funding to what may be considered a high-risk borrower.

To help a borrower look its best to a lender (i.e. low-risk), FranFund developed a franchise-specific pre-qualification tool called FranScore. This tool is used to analyze a potential loan applicant’s credit profile from a lender’s standpoint and take measurable steps to minimize any potentially negative factors. This not only saves time during the loan process, but it has been highly successful in helping secure efficient loan approvals, enjoying a historical 99 per cent success rate.

INVESTING IN YOURSELF VIA QUALIFIED RETIREMENT FUNDS

Rather than incurring new debt, many entrepreneurs would rather fund their new business using assets they already own. A common way to do this is by using a strategy called Rollover for Business Startups, or ROBS. This funding strategy essentially allows entrepreneurs to leverage qualified retirement funds to capitalize their business. In addition to the benefits of funding a new business, ROBS strategies can use any portion of a business owner’s retirement funds and are a great way to diversify one’s portfolio with an active investment that they have control over.

“I realized that aspiring business owners would benefit from a financial partner who could provide multiple funding solutions under one roof”

ROBS plans are tax-deferred and incur zero debt. The processes are guided by the Internal Revenue Service (IRS) and Department of Labor (DoL) and have been in place since the Employee Retirement Income Security Act (ERISA) of 1974. Working with a trustworthy and experienced funding provider like FranFund is crucial because the rules can be complex.

FranFund administers ROBS plans through its proven FranPlan program, which helps ensure compliance with all federal guidelines. FranFund then provides ongoing third-party administration of their ROBS plan throughout the life of this funding plan.

Many entrepreneurs utilize a combination of FranFund-facilitated tools in their capitalization strategies. Custom-tailored strategies are one of the main advantages of working with a holistic funding solutions provider.

STRENGTH IN THE SYSTEM

FranFund was founded in 2006 by Geoff Seiber, a franchise industry veteran with firsthand experience as a franchise owner, franchise developer, and new franchise creator. After spending decades in the industry, Geoff recognized a need for consolidated franchise funding solutions.

“I realized that aspiring business owners would benefit from a financial partner who could provide multiple funding solutions under one roof,” Geoff explains. “FranFund was the pioneer of the one-stop-shop concept in the funding space.”

FranFund is the industry leader when it comes to high-touch and engaging five-star service. This is critical when it comes to assuaging uncertainty in business owners, and it helps them focus on the day-to-day operation of their businesses.

NAVIGATING A DYNAMIC WORLD

As the past year has taught everyone, change can happen at a moment’s notice. Partnering with an experienced and trusted funding provider is especially important in today’s ever-changing business climate.

Some of the most commonly franchised businesses are in industries seeing huge amounts of pent-up demand. The franchise industry is poised to do extremely well in the upcoming year, as vaccines are rolled out, restrictions are rolled back, and normal life begins to return.

If you’re considering franchise business ownership, FranFund is a trusted supplier. It provides all funding solutions under one roof and makes the process simple and painless, so you can focus on what really matters: launching or growing your business.

SAVING INVALUABLE TIME

“FranFund is an essential service for anyone starting up a new business. I worked with Mariah Bohn and Jessica Clause and was just amazed at how simple they made everything for me. The hours they saved me are invaluable – I was able to focus on getting my sales going instead of worrying about forms and documents” – Jack K.

UNBEATABLE GUIDANCE

“My journey with FranFund started in July of 2020. They were extremely helpful and provided professional advice and insight along the way. From company registration through SBA loan financing, they helped to guide it through to the end” – Sean M.

EXTREMELY PROFESSIONAL

“When it came to selecting a funding partner to help get my new business up and running, I am certainly glad I made the decision to work with FranFund. Mariah Bohn and Jessica Nicole Clause were extremely professional, knowledgeable, and always very responsive throughout the entire process” – Peter B.

AT A GLANCE

Established: 2006

Location: Fort Worth, Texas

Contact: info@franfund.com

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