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Buying a Franchise with Bad Credit

Buying a Franchise with Bad Credit - Usually, it's easier to get a bank loan to buy a franchise than it is to start your own business, but that doesn't mean it's easy if you have poor or bad credit. Franchisee prospects should consider a microloans.

Franchising Business Opportunities

The Franchise Buying Guide - When you buy a franchise, you often can sell goods and services that have instant name recognition, and get training and support that can help you succeed. But purchasing a franchise is like every other investment: there’s no guarantee of success.

Franchise Fees and Expenses

Franchise Fees and Expenses - Your initial franchise fee, which will range from several thousand dollars to several hundred thousand dollars, may be non-refundable. You may incur significant costs to rent, build, and equip an outlet and to buy initial inventory. You also may have to pay for operating licenses and insurance, and a “grand opening” fee to the franchisor to promote your new outlet.

Franchise Sales Area Restrictions

Restrictions on Franchise Sales Area - A franchisor may limit your business to a specific territory. While territorial restrictions may ensure that you will not compete with other franchisees for the same customers, they also could hurt your ability to open additional outlets or to move to a more profitable location. In addition, a franchisor may limit your ability to have your own website, which could restrict your ability to have online customers.