30% of small business owners started their business because they were ready to be their own boss. It is overpowering to start a business from scratch. You need to develop a business idea, create a model for success, and oversee all aspects of a new business from the opening of the door. Therefore, franchising is a popular option. By Investing into a franchise model that has proven success, you benefit from experience, guidelines, and structured support, allowing you to be able to achieve your ownership dreams., which can range from a few thousand dollars to millions.

Starting or buying a franchise requires a capital investment ranging from a few thousands to millions. However, you do not need to have the entire investment on hand as most franchisors offer the franchisee financing options to assist with the funding needs. Franchisors want people to open franchises–that’s their entire business model, and it’s one that has been working for generations. Many companies provide some financing options for qualifying franchisees. Sometimes they connect franchisees to third-party lenders, while other times they might offer lines of credit directly. Importantly, though, you should know that all funding from a franchisor is going to be a debt, they aren’t angel investors. You should always compare the terms of any franchisor fundraising with other options. Don’t assume that because the financing is offered or recommended by the franchisor it is necessarily the best route for you. CT3M understands these requirements and works with a franchisee with all phases of funding needed to open the door.

When applying for franchise financing, personal collateral usually comes with the territory. Lenders look for some type of possession to back the loan in case of default, like your property, car, home, etc. But risking your own assets can be worrisome, especially when you’re investing in a new venture.

For business owners seeking financing without risking collateral, unsecured loans can be a good option. Like credit cards, this funding method consists of multiple lines of revolving credit that can be used for anything from working capital to franchise fees.

Opportunities for entrepreneurship are varied and the sky’s the limit in terms of which business idea to pursue. But if you want to start a business that comes with an established brand and business model, a franchise might be a good fit.