This might be a great place to start your quest for financing. If it is offered, your franchisor will supply you with everything you need to get started, becoming a “one-stop shop” of sorts for your franchise business. It certainly simplifies things.
When your funding is coming directly from a franchisor, the lender will typically specify how much you can borrow, the length of your repayment term and most other conditions of your loan. As a borrower, you don’t have much leeway to negotiate, and terms vary greatly among franchisors. Still, this is one area where working hand-in-hand with a large corporation can be beneficial: your franchisor understands the business and the risks you’re taking on better than anyone, and typically has a vested interest in seeing you succeed. Some franchisors also offer discounts to veterans, minorities, and women, so it’s always wise to ask what they can do for you before pursuing other financing options.