Franchise Financing

Franchise Financing

When it comes to franchise financing, Mission Valley Capital has the solution you need. It doesn’t matter if you’re a first time owner or have multiple locations, we have access to the right financing for you with products ranging from $150,000 to over $1,000,000.

When you open a franchise, the franchisor, sells you the right to it name, the products they retail and their brand. The agreement lasts for a certain length of time.  Starting a business with a proven brand and model are, in many cases, a strong formula for success.  While there may be creative limitations in terms of what you sell, how you sell it and where you’re located.  You are also responsible for the costs to start the business so achieving the right structured loan is imperative.

In terms of the initial costs a franchise is much like starting any other new entity.  You will have to buy the real estate, equipment and inventory.  The difference is that you know exactly what to buy, what it will cost and what the best ROI will be before you get started.  In many cases a franchisee is responsible to pay for training, marketing and SOP manuals.  An upfront franchise fee is usually required and can be paid up front or over the course of time.  Each franchise has their own fee cost and is not refundable once it has been established.

Franchisors will also charge recurring marketing and royalty which is usually a percentage of the gross sales for each location.  Each company sets their own percentage and all figures are disclosed ahead of time.

Finding the right financing for a franchise can be a daunting task as not many lenders are equipped to handle them.  By offering a full menu of financing options for purchasing Real Estate or equipment, new construction or remodels, acquisitions, or refinancing we are able to meet the needs of your business. We offer a fast pre-qualification process for your franchise loan and never waste your time.  We can either provide terms that make sense or we can’t, it’s that simple.

Our Franchise Financing program includes:

• Up to 90% LTV
• Extra cash for Working Capital
• Rates as low as 6%
• Fast closing and commitments
• First time owners
• Up to 25 year terms
• No Pre-Payment Penalties

Call and speak to one of the partners at Mission Valley Capital today.