For entrepreneurs looking to start something with an established brand identity and customer base, purchasing a franchise is often a popular choice.
However, the benefits of almost-assured brand awareness and lower barriers to entry are significant franchise costs. Starting with an upfront franchise fee, franchisees also must pay ongoing royalties as long as they remain in business. It is the price to pay for a proven business system that has been planned and packaged for multiplication.
Given these inherent costs, running a franchise can be an expensive undertaking, and oftentimes additional cash flow is needed to maintain and help expand and improve the franchise. After all, what franchisee doesn’t want to increase profitability?
The problem is that finding financing for franchisees has been tough in recent years. The solution lies in alternative business financing.
Merchant cash advances are the perfect solution for financing franchises.
With the burden of fixed franchise fees, merchant cash advances offer cash flow relief in the form of a variable repayment system based on debit/credit sales. If your franchise has a slow month, you pay back at a slower rate, allowing you to focus on revenue-building activities as opposed to worrying about traditional rigid repayment plans that tend to handcuff operations.
As the leading Canadian provider of merchant cash advances, Advanceit has a wealth of knowledge and expertise in business cash advances for franchisees. The important thing to note, is that each franchise is its own unique case, and by working with a funding specialist, franchisees can determine the best way to add cash flow while maintaining a balanced budget.
There is no one solution for all franchises. Even franchises of the same brand will not necessarily fit into the same financing model. The most vital aspect of speaking with a specialist is finding a fit together that works given a variety of factors including your franchise’s card to cash ratio, seasonality, and clientèle demographic to name a few.
With a wide range of franchise clients that include Subway, Second Cup, Midas, Burger King, Pizza Hut and many more, Advanceit continues to fund and support entrepreneurs with cash flow aid and up-to-the-minute business advice.
Speak with a funding specialist to see how your franchise can benefit from a business cash advance. With nothing to lose, and much to gain, it’s no surprise that thousands of Canadian businesses partner with Advanceit to help finance their growth.