How Much Does It Really Cost to Buy a Franchise?

Franchises often require a substantial upfront investment, but you don’t always need to pay entirely out of pocket. Here are common funding options:

SBA Loans
The Small Business Administration guarantees a portion of the loan, making it easier to qualify. Many franchises are SBA-approved. There are a variety of different SBA programs.

Conventional Bank Loans
These typically require strong credit and collateral but may offer better terms if you qualify.

Franchisor Financing
Some brands offer in-house financing for franchise fees, equipment, or both.

Retirement Funds (ROBS)
A Rollover for Business Startups (ROBS) allows you to invest retirement savings (401K, etc) without early withdrawal penalties—consult an expert before pursuing this route.

Friends & Family Investors
While common, this option requires clear agreements to avoid strain on relationships.

Takeaway: The best funding solution often combines multiple sources. Start conversations early so financing doesn’t delay your launch.

Have questions about franchise ownership OR franchising your existing business? Please feel free to reach out to me at JoeFox@TheFranchiseConsultingCompany.com or (713) 936-4929. I am a Senior Franchise Consultant with over 30 years of business experience. My services are free and I'm here to help.

#StartABusiness #FranchiseExpo #Franchising #FranchisingForVeterans #FranchiseYourBusiness #BuyAFranchise #JoeFoxFranchise #FranchiseConsultant #AreaDevelopment #FranchiseFinancing