Franchising Financing

The definition of Franchising is when one party (the franchiser) grants another party (the franchisee) the right to use its trademark or trade-name as well as certain business systems and processes, to produce and market a good or service according to certain specifications. The franchisee usually pays a one-time franchise fee plus a percentage of sales revenue as royalty, and gains (1) immediate name recognition, (2) tried and tested products, (3) standard building design and décor, (4) detailed techniques in running and promoting the business, (5) training of employees, and (6) ongoing help in promoting and upgrading of the products. Some of the most successful franchises are 7-Elevens, McDonalds, Dunkin Donuts, and Jimmy Johns. When the franchisee is approved to start, refinance, or buy out an existing franchise Active Business Loans can lead you through the process. Not only can high volume franchises be financed but lower volume franchises can be also.   Financing can lead to a 10 year term with low interest rate and real estate is NOT necessary.