Thinking of buying a franchise? You can join a strong and growing industry that currently comprises over 750,000 franchise establishments in the U.S. across more than 3,000 brands. Buying a franchise offers many advantages but it isn’t a risk-free route to independent business ownership. 

The Pros of Buying a Franchise 

The pros of buying a franchise include: 

• Skipping the many “starting from scratch” challenges faced by new “one-off” business concepts. Instead, a franchise owner receives the benefits of getting an established and proven business model with a well-defined, established, and proven operating system.  

• Access to a brand name and trademarks that have some public recognition that leads to valuable customer knowledge and trust.  

• Benefit from a franchisor’s training program and ongoing training and operating support.  

• Get help with marketing and advertising strategies, plans, and tactics.  

• Receive access to purchasing power far beyond what could be acquired as a one-unit operator.  

• Gain access to funding. Often a franchisor will offer some financial assistance, either from the franchise corporation itself or from its financial partners. In addition, the Small Business Administration reserves a portion of their funding expressly for franchise buyers.   

The Cons of Buying a Franchise 

The cons of buying a franchise include the need to abide by the franchisor’s requirements and rules and being tied to the reputation of the franchisor. In addition, there are sometimes high startup costs including a required franchise fee plus ongoing royalty payments. 

Steps to Buy a Franchise 

Follow these steps to realize the dream of business ownership through buying a franchise: 

• Carefully research available franchise ownership opportunities and territories that may be available where you want to operate.  

• Contact franchisor candidates for initial applications and their Franchise Disclosure Documents. Then, study those documents thoroughly.  

• Attend the franchisor’s Discovery Day.  

• Review the franchise agreement carefully.  

• Get the right financing to buy your franchise.   

Seek Experienced Financial Assistance 

Contact TCF Capital for a wide range of financing solutions. Specifically tailored to your needs to help your entrepreneurial dreams come to life.