Have you bought – or are looking to buy – a franchise and need a loan to cover the costs? Here at Cubefunder we can help you with a franchise loan.
You might have been enquiring elsewhere but encountered a negative or unhelpful reply or unsuitable loan offer. If that is the case, then please discuss your needs with us. We lend our own money and pride ourselves as a business on a mission to help other businesses.
How Cubefunder can help you with franchise loans
The purchase of a franchise may be a sound and rewarding business decision. Like many other investments, however, success depends on your paying both initial and continuing costs. While these costs may be included in the budget for such a venture, there are times when you are likely to need the extra help of additional, external funding.
Franchise loans may provide that necessary finance in the following way offering:
- an affordable and rapidly delivered loan to help meet your franchise costs;
- unsecured business finance against any of your company or personal assets;
- repayment terms of between three and 12 months; and
- borrowing of any amount from £15,000 up to £100,000 – subject to status, of course.
How Cubefunder can work for you
Online or telephone applications are simple and straight forward – and if you get into any difficulties, a member of our team is on hand to guide you through the process.
We’ve streamlined that process so that you don’t have to spend precious time and energy drafting elaborate business plans or cash flow analyses – instead, we rely on working with you to discover precisely what is needed, how much you may need to borrow, and, how long you might need the repayment term to last.
From the moment of your first enquiry, we are generally able to give you an immediate decision in principle on your proposed borrowing.
If your formal application is then also approved, we transfer the requested funds electronically directly to your company bank account.
We add a single fixed sum to cover the cost of credit, so you know from the outset how much you are going to be paying in equal monthly instalments until the end of the borrowing term.
Reasons why you may need franchise loans
Your purchase of a franchise is likely to involve a considerable investment. Up front franchise fees typically range between £500 and £300,000, depending on the brand into which you are buying. That fee is likely to cover a package of franchise services – such as the right to use the brand name, its IT systems, logo and décor, staff recruitment, any specialist equipment you might need, and a sum designed to reimburse the franchisor for the initial costs of creating a network of franchises.
Franchise fee finance
Unfortunately, that initial outlay is not the last of your expenses. The typical franchise agreement also provides for the payment of a regular monthly fee – also known as a royalty fee or management services fee. This might be either:
- rarely, these days, a fixed amount each month for the rights to run your franchise under the named brand; or
- more commonly, a fee based on a percentage of your takings earned from franchise sales – the more money you are making in your successful franchise business, the more the franchisor also makes.
The percentage franchise fee varies considerably from one franchisor to another, but you might be wary of those charging a lower fee since you are then likely to receive less in the way of critical support in running your franchise.
Nevertheless, if your percentage franchise fee is in the typical range of 10% to 15%, this is likely to represent a significant regular expense for your business – and one that varies according to the sales you have made.
Both to meet that expense and to help smooth out the peaks and troughs of the payments you must make to the franchisor, therefore, you might want to consider the benefits of franchise fee finance – which effectively turns a variable monthly payment into one of known fixed instalments throughout the term of your loan.