Thursday, November 11, 2010

How can I franchise a company with no net worth?

It is relatively easy to get an unsecured business start-up loan. However, most franchisors require you to have a minimum net worth, and a minimum amount of liquid cash. As a 24 year-old who has just graduated from college, is there a way to get around these requirements or are there certain companies that don't have these restrcitions?How can I franchise a company with no net worth?
You had better hang your hat, buddy! No one is going to get involved in a business deal that is more than likely going to go south! You have to have a business established and showing that it is going to swim not sink in order to franchise it out!How can I franchise a company with no net worth?
best bet is to find a silent partner who will front the $$$ and let you run the business. All, goes well and you buy him out a few years down the road.
Being you've just graduated from college, I'm going to guess you have a lack of experience when it comes to running a business with any sort of capital behind it.



If you're looking from funding, weather it be a venture capitalist or traditional financing, I would have a solid business and marketing plan developed.



You may also speak with the franchise holder. I know with some major franchises, even if you don't have the capital, if you can prove it's a market which is untapped and is in their best interest, they may work with you.



I *wouldn't* recommend this, but you can sometimes use personal assets as leverage, if you own a house or a vehicle, depending on how much you're looking for.
Why not join an existing, successful business with a low start up cost? It allows you to save your money and invest it in growing a business; your only loss then is money out of pocket; you can see if the business works for you and you can see how market acceptance of the product is.



Write me (wasdadd) at yahoo for more info.

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